By analyzing the information in Exercise 13 16, prepare a statement of cash flows. Use the direct method to report cash flows from operating activities.
CASH FLOW PATTERNS
Below are recent financial statement data for the following companies:
• AMAZON.COM
• COCA COLA
• EXXONMOBIL
• MICROSOFT
Use the financial statement data to match each company with its numbers. All numbers are inmillions.
|
Cash Flow from |
||||
|
Net |
Operating |
Investing |
Financing |
|
|
Income |
Activities |
Activities |
Activities |
|
|
1 |
$ (720) |
$ (91) |
$ (922) |
$ 1,104 |
|
2 |
7,910 |
15,013 |
(10,985) |
(4,779) |
|
3 |
7,785 |
10,030 |
(11,191) |
2,245 |
|
4 |
2,431 |
3,883 |
(3,421) |
(471) |
Consider the following information as you match the companies:
1.Start ups have high positive financing cash flows relative to investing cash flows.
2.Companies with lots of property, plant, and equipment have cash from operations that is greater than net income because of lots of depreciation expense.
3.Old cash cows are spending money on investing but still have plenty left over for a net cash outflow from financing activities.