Study And Analysis On Cash Flow Statements Finance Essay

Study And Analysis On Cash Flow Statements Finance Essay The Statement of Cash Flows is one of three very important financial reports that managers and investors look at when analyzing a companys past or present financial status. The balance sheet and the income statement are the other two reports. All of these reports are very important in running a successful business, but I personally feel that the cash flow statement is the most important. It is like the blood of a company since it would not survive successfully without it. Cash on hand can actually be much more important than income, profits, assets, and liabilities put together, especially in the early stages of our company. The cash flow statement tells us how much cash we have on hand after all costs are met. It shows how much cash we started with and how much we pay out. There are two parts to the Cash Flow Statement which are the top and bottom halves. The top half deals with the inflow and outflow of our companys cash. The bottom half of the statement reports where the funds end up. Just like the balance sheet, the top and bottom halves of a cash flow statement match. Knowing just how important it is to have cash on hand to pay the bills we want to make sure and review our cash flow statement regularly (How to Prepare, 2010). The top half of the cash flow statement deals with the inflow and outflow of cash. This tracks where our company gets our money and what we spend those funds on. Cash flow is a little more honest than an income statement, because the cash flow statement shows money coming in only when we actually deposit it and money going out only when we physically write out a check (How to Prepare, 2010). Because the cash flow statement reflects the actual receipt of cash, no matter where it comes from, the entries are a bit different from the revenue shown in a companys income statement. These funds are usually made up of gross receipts on sales, dividend and interest income, and invested capital. Gross receipts on sales represent the total money that we take in on sales during the period. Gross receipts are based on our gross revenue, of course, but they also take into account when you actually receive payment. Dividend and interest income is the income that we receive from savings accounts and other securities (Dividend Income, 2010). This is one of those amounts that are also reported on the income statement and should be the same as long as we actually receive the money during the period covered by the cash flow statement. Invested capital is part of the owners equity in the balance sheet. Although it does not represent revenue from our business operations and would not be part o f the income statement, it can be a source of cash for our company. The cash flow statement keeps track of the costs and expenses that we incur for anything and everything. Some of the expenses appear in the income statement and some dont because they dont directly relate to our costs of doing business. These funds consist of cost of goods produced, sales, administration, interest expense, taxes ECT. The cost of goods produced is exactly that, the cost incurred to produce our product or service during the period. Sales expenses are the same expenses that appear in an income statement except that paying off bills or postponing payments may change the amounts (. On to the bottom half of the cash flow statement which shows where our money is ending up. When our companys cash reserves raise the money flows into one or more of our asset accounts. The bottom half of the cash flow statement keeps track of what is happening to those accounts. This part of the Statement consists of changes in liquid assets and net change in cash position. With cash flowing in and out of the company, our liquid assets are going to change during the period covered by the cash flow statement. The items listed in this portion of the cash flow statement are the same ones that appear in the balance sheet. Raising the level of our liquid asset accounts has the effect of strengthening our cash position. In order to properly construct a cash flow analysis we have to look at three very important activities which are operating, investing and financing (Cash Flow, 2010). Operating activities are the cash components that are generated from the sales of the companies goods or products effecting the core business operation. These include the purchase of raw materials, production costs, advertising cost and even the delivery to customers (Cash Flow, 2010). Investing activities are straight forward items that report adjustments in the balances of fixed asset accounts like equipment, buildings, land and vehicles. Investing activities include making and collecting loans and acquiring and disposing of investments and property, plant and equipment (Investing, 2010). Financing activities are cash adjustments to fixed liabilities and owners equity. Cash increases when the company takes up a loan or raised capital, when dividends are paid out, cash decreases accordingly. Financing activities involve liabilities and owners equity items. They include obtaining resources from owners and providing them with a return on their investments, and borrowing money from creditors to repay the amounts borrowed (Financing, 2010). There are a few main objectives of the Statement of Cash flows one of which is to help assess the timing, amounts and the uncertainty of future cash flows (Revenues, 2010). This is one of the quarterly financial reports that publicly traded companies are required to release to the public. According to Investopedia, because public companies tend to use accrual accounting, the income statements they release each quarter may not necessarily reflect changes in their cash positions. The statement of cash flows is very important to businesses because it helps investors see where the company can benefit from better cash management. There are many profitable companies today that still fail at adequately managing their cash flow so it is important to be able to see where the weaknesses are in order to correct them. In conclusion the statement of cash flows is very important for companies and people that want to invest into a certain company. It shows how well a company manages its cash incomings and outgoings as well as showing how profitable a company might be or become. It is a very clear document to understand so that we dont fall victim to making a profit while still going broke. It is also helpful for the companies finance department so that they can see where the company stands in order to get more potential investors. It is a great resource to look at in order to recap a companys financial standing that most people are able to understand.

Six Dimensions of Health

Associate Level Material Six Dimensions of Health Worksheet Part 1 For each of the following six dimensions of health, list at least one characteristic, activity, belief, or attitude that reflects that dimension in your life. Provide a brief explanation with each example. Refer to Ch. 1 in the text for explanations of these dimensions. Physical health: When I am eating right exercising and getting enough rest I am less prone to illness, stress and exhaustion. When I have done these things in my life I find that I function on a daily basis a lot better.With exercise and a healthy diet you release happy endorphins which minimize stress and allow me to focus and complete task effectively. Social health: Social health reminds me of what we learned about social and academic writing, I have found they have a lot of similarities. The ones that I have noticed is that you need to be able to maintain a certain level of professionalism when interacting with certain people. , work staff and clie nts. There are certain conversations and behaviors that are not acceptable with everyone.My personal relationships with my friends and family allow me to vent about the work place or to seek personal advice that I could not get ask for in my work environment. Intellectual health: it allows me to review what has happened in the past and make a reasonable assumption of what will happen in the future. For instance, I have found that when I hire people that are in the business for 20 years they are not interested in following most likely not to follow the structure of the company; as if you hire a new person fresh they do not have any other experience.So there for I like to hire new people out of school because they can be molded to the SportClips way. Environmental health: Keeping a clean environment and not doing things that are detrimental to the environment. I do my part by doing things such as not using harsh chemicals in my daily life and recycling. Maintaining a health work envir onment for the people in interact with on a daily basis. Emotional health: To me this refers to my job and my daily life, at times I am extremely overwhelmed and I have to remember not to displace my frustrations or emotions in the wrong place.A lot of times when I get overwhelmed I get very irritable and and become discourages depending on the situation. Spiritual health: I think this is a combination of things that are backed by your faith system and religious beliefs. I was raised in a christian household and I think that these things have taught me to follow a certain value system. Your faith system should teach you to be a better person and live by a certain moral code on how you treat yourself and others. Part 2 In approximately 125 to 200 words, describe health and wellness in your own words using the ideas and concepts for each of the six dimensions of health.In my opinion health and wellness means to take care of yourself and each of these plays a major part in that. Physic al health has to do with your body, ability to fight off disease. Social has to do with your ability to successfully maintain appropriate relationships. Intellectual refers to critical thinking and your ability to analyze certain situations. Emotional has to do with how you properly express emotions. Environmental has to do with your respect for the environment around you and helping to protect it. Spirituality has to do with your values system based on your religious beliefs.

Effects of Divorce Essay

Divorce can be defined as the termination of a marital union, the canceling of the legal duties and responsibilities of marriage and the dissolving of the bonds of matrimony between married couples (Wikipedia, 2013). Divorce affects the couple and children (if any). The divorce is the most serious social problem that affects almost the entire life of the children and the couple, it also makes troubles like: sadness, despair, and unforgettable moments (Williams, 2013). In this paper, I will be discussing the factors contributing to divorce in Canada and will also explain certain statistics used as well. The methodologies that I will be using are both the qualitative and quantitative approach. The reasons I am using both of them are because by using the quantitative research, I will develop mathematical hypotheses pertaining to the phenomena. Also to analyze this topic with the use of statistics to make it somewhat accurate, while for quantitative; because it will explain in word data about my information. I strongly believe that these two forms of methodology will properly explain the factors contributing to divorce. The history of the legalization of divorce in Canada predates that of its colonial overseer, England, where it was only in 1857 that divorce was legislated, mainly on grounds of adultery. Nova Scotia, New Brunswick, and Prince Edward Island respectively enacted divorce laws in 1761, 1791, and 1837, generally on grounds of adultery (Wu & Schimmele, 2009). It was not until 1968 that Canada enacted its first unified Federal Divorce Act, which was followed by the more liberal or no fault act of 1985 and it was mentioned that the sole reason for divorce is marriage breakdown, which is defined as either living apart for at least one year, or committing adultery, or treating the other spouse with physical or mental cruelty. Though divorce rates have not increased recently in Canada, the number of divorced persons is however increasing with population growth. In 2007, there were 972,183 divorced women and 712,531 divorced men in the population (Statistics Canada, 2007). The difference betwee n the men and women is because divorced men re-partner faster and more than women and also because women live longer than men.

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