Please note that there are 2 independent questions for this post. Do NOT merge the answers to make one answer.
DQ1
Using the Coca-Cola company,
access its most recent financial statements, form 10-K. Include the name of the
company in your subject line, and if possible, do not choose a company about
which one of your classmates has already posted. Navigate to the statement of
cash flows that was prepared using an indirect method. Discuss an item that was
included when calculating net income, but is adjusted as an increase or
decrease to determine cash provided by (used in/by) operating activities. Note,
increases and decreases in the operation activities section of the cash flows
result from changes in current assets, current liabilities, gains, and losses.
Include a summary of how that particular item impacted net income (or net loss)
and why an adjustment might be necessary to reconcile net income to net cash
flows from operating activities. If possible, use an item not already used in a
classmate’s post. In your post, include a screenshot of the statement of cash
flows you are analyzing or provide the URL and applicable page number for the statement
of cash flows.
DQ2
Many small business owners
focus on the cash balance in their bank accounts and may not use the statement
of cash flows to analyze how their businesses are generating or using cash.
Discuss what one piece of information is found on the statement of cash flows
that is just as important as the bank balance (or more so) for the purpose of
understanding the financial position of a company.
