|Exercise 7.1||Accounting Statement of Cash Flows|
IBM's Investment Guides provide an introduction to reading the financial statements in a company's annual report. Clicking on "Statement of Cash Flows," leads you to a good discussion of the Accounting Statement of Cash Flows prepared according to the Indirect Method. After reading this discussion, see what tips on using a cash flow statement you can pick up from a "business school dean" and a "business executive."
Q. What number on the statement of cash flows do both the "business school dean" and "business executive" focus on as the most important figure? Why?
|Exercise 7.2||Cash-Flow Forecasting|
Business Planning and Financial Forecasting has a nice section on "Why do a cash flow forecast?" After reading that section, you should be able to answer the following questions.
Q. Why is it important to prepare a cash-flow forecast? What three-step procedure does this web site suggest for preparing a cash-flow forecast? What other piece of useful information did you find at this site that you think should be discussed in your text? Why?
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