Sample Statement of Cash Flows Cash Flow from Operations Net profit after taxes +Depreciation +Decrease in accounts receivable +Decrease in inventories +Increase in accounts payable +Decrease in accruals Cash provided by operations Cash Flow from Investments Increase in fixed assets Change in business ownership Cash provided by investment activities Cash Flow from Financing +Decrease in notes payable +Increase in long-term debt +Changes in stockholders equity -Dividends paid Cash provided by financing activities Net increase/decrease in cash and marketable securities

The Statement of Cash Flows on page presents how changes in Balance Sheet accounts will affect a companys cash balance. Refer to that information and discuss how an increase in your company's accounts payable from one period to the next is a means to maintain high cash balances in your companys bank account. Do you believe there are any ethical considerations in slowing payments to your suppliers for the sake of increasing your company's bank balances?