Show Me The Money: Cuba Gooding Inc.

The statement of cash flows breaks down the cash exchange of the long term debt for the past two years. Under the Financing Activities portion of the cash flows statement it shows the long term debt broken down intoproceeds from and repayment of bank loans. The calculations of the changes in the past two years are expressed below in thousands:

The statement of cash flows reports the cash receipts, cash payments, and net change in cash resulting from the operating, investing, and financing activities of a company during a period in a format that reconciles the beginning and ending cash balances

The cash flow statement on p74 is a summary of all the transactions that affected the cash account for the year. The cash flow statement helps to predict future cash flows. It helps to evaluate management decisions. Wise decisions lead to profits and strong cash flows, and vice versa. The investment activities show what investments the company is making. Cash flow statements also determine the company’s ability to pay dividends and debts. From the

The cash flow statement shows the amount of cash within a company. Items that affect the cash balance are listed on the statement. The first section of the cash flow statement is operating activities, which shows the cash flowing in and out of the company in relation to its business operation. The operating activities section also includes net income and the change in dollars of certain accounts listed on the balance sheet. The next section, investing activities, shows cash the company received and spent on a company's capital investments. The financing activities section shows the inflows and outflows of cash related to the company’s issued financial securities, which is also listed on the balance sheet and statement of shareholders' equity.

Cash flow can be used as an indication of a company 's financial strength by the comparability of the inflows and the outflows cash flows are essential to solvency. The statement presents a record of something that has happened in the past, such as the sale of a particular product, or forecasted into the future, representing what DJS expects to take in and to spend. Cash flow is crucial to an entity 's survival.

The cash flow statement consists of three parts: cash flows provided by operating activities of $13,831, cash flows provided by investing activities, and cash flows provided by financing activities effect of exchange rate changes on cash and cash equivalents of ($204)

The net income is actually considerably different from the operating cash flow for multiple reasons. The first reason is non-cash expenses; these type of expenses are items such as depreciation or devaluing of something that was previously of higher value. Amortization of intangible assets, which is the steady reduction in recorded value of an intangible asset over time. These types of expenses truly do not require cash; outlays reduce net earnings but do not affect net cash outflow. Another imperative reason is that many timing differences occurring between the identification of revenue and expense and the incident of the underlying cash flow. In conclusion, the none operating losses and gains are used in the determination of net income, however, the associated cash flows are then classified as financing and investing activities, and they do not include operating activities.

Charles Gibson said, said the “statement of cash flow has become one of the primary financial statements. …it gives managers, equity analyst, commercial lenders, and investment bankers a thorough explanation of the changes that occurred in the firm’s cash balances.” (2013, p. 393). On the cash flow statement both net cash provided by operating activities and net income are both listed. An explanation on the difference between the two is discussed below.

Kramer talked about the statement of cash flows and how they serve as much the same purpose as the income statement, with the major difference being the cash flow statement 's exclusion of non-cash income and expenses (Kramer, Johnson, 2009). According to Kramer and Johnson (2009), accountants commonly begin with the net income figure from the income statement when developing a statement of cash flows. According to Kramer, and Johnson (2009), accountants adjust net income by adding back non-cash expenses and subtracting non-cash income, arriving at a net increase or decrease in cash. Kramer and Johnson stated

For example, if one the following is one company’s cash flow statement: revenue of 4.8 million from current period sales and providing labor, bonus of 0.75 million for employees, purchasing fixed assets in current period for 0.95 million, and payment of 0.18 million for banking interest. As the same, cash inflows and outflows from other operating activities can be allocated into cash flow statement. Therefore, cash flow statement can reveal the reason of cash inflows and outflow, to say in another way, cash comes from where and go to where, which information balance sheet and income statement cannot provide.

The Statement of Cash Flows is a very viable and helpful resource. Decision makers use the Statement of Cash Flows in many instances to assess the viability of a firm. Within the statement are many types of elements that are incorporated to create the complete Statement of Cash Flows. Also within the statement is what is known as the inflows and outflows. In some cases, activity notes may be incorporated to help complete such representations.

The balance sheet reports the resources of the company with three main components broken down into an algebraic equation (assets = liabilities + owner equity). The income statement reports the amount of net income earned by a company during a specific time. The net income is an excess of revenue over expenses. The statement of cash flow reports the amount of cash collected and paid out by a company in the following three ways: operating, investing, and financing (Albrecht, Stice, Stice, and Swain, 2008).

      The Statement of Cash flows is a very useful financial statement that can benefit investors, managers and even auditors. The statement of cash flows has not been around as long as the other financial statements such as the balance sheet or income statement. It basically “illustrates the way accounting evolves to meet the requirements of users of financial statements.” (Marshall, 2003) The statement of cash flows is designed to provide important information about the cash that a company has received or has paid out during a certain time period. It provides a reason for the changes of cash received and paid by a company by taking into

It surveys the amount, timing, and consistency of money inflows and outflows. The cash flow statement is typically the last record arranged in an organization's budgetary report. The record contains data that is a follow up of data contained in the salary proclamation and monetary record. Examiners, speculators, monetary banks utilize the records to survey the financial position of an organization. It also helps to keep track of the suitability of a venture for loaning money for future operations. To account for whether the sum owed to the business has gone up or down, it is essential for the organization to contrast the progressing income results with those of previous

| Below is an excerpt from the cash flow statement of a firm for fiscal year 2003: Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Amortization of software Tax benefits of employee stock plans Special charges (Gains)/losses on investments Change in operating assets and liabilities: Receivables Inventories Pension assets Other assets Accounts payable Pension liabilities Other liabilities Net cash provided by operating activities Cash flows from investing activities: Payments for plant and other property Proceeds from disposition of plant and other property Investment in software