Analyzing a Cash Flow Statement The 2000 financial statements of White Company included the cash flow statement

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Analyzing a Cash Flow Statement The 2000 financial statements of White Company included the cash flow statement shown below.

a. Prepare an analysis of White Company’s 2000 cash flow statement showing the total sources of cash and the percentage of cash coming from each.

. Prepare an analysis of White’s 2000 cash flow statement showing the uses of White’s cash and the percentage going to each use.

. Did White Company increase or decrease its current assets other than cash in 2000? Is this change consistent with an increase or a decrease in sales during the period? Explain.

Has White Company become more or less risky during 2000 from an investor’s viewpoint? Explain why.
. Does White appear to be expanding or contracting its operations? How can you tell? What other financial statement information might you examine to determine if White is expanding? Does White appear able to maintain its productive capacity without additional financing? Explain.

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Financial Accounting A Decision Making Approach

ISBN: 9780471328230

2nd Edition

Authors: Thomas E. King, Valdean C. Lembke, John H. Smith

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