Firm Statement of Cash Flow Analysis
Firm Statement of Cash Flow Analysis
Statement of Cash Flow Analysis
Purpose: Throughout the remainder of the semester you will assume the role of senior management or the board in analyzing the current financial performance of the firm.This assignment focuses on analysis of the balance sheet.
My FIRM (MICROSOFT)
Steps:
- Obtain two years of financial information (you should use 2016-2017, unless otherwise approved), including the balance sheet, income statement, and statement of cash flows.This should be available via the firms most recent Annual Report (10K).
- Is your firm’s statement of cash flow reported using the direct or indirect method?Explain how you determined the method used.
- Compile a vertical common-sized statement of cash flow using total assets as you denominator sheet for years 2016-2017.
- What do you learn from the common sized statement of cash flow that may be different or more evident from the reported statement of cash flow?
- Reconcile your firm’s 2016 and 2017 balance sheet using the 2017 statement of cash flow.
- Using the same two peer firm’s used in the balance sheet and income statement analysis repeat steps 1-4.
Analyze your firm’s strengths and weaknesses determined through your examination of their statement of cash flows.This should include a discussion of how they relate to their peer firms (comparative analysis) and to itself over time (time series or trend analysis