ACCT 105 Week 5 Cash Flow Statements Complete the two parts in the attachment: Part 1: Forum post 250words part 2: Reply to two classmate post Part 1. Th

ACCT 105 Week 5 Cash Flow Statements Complete the two parts in the attachment:

Part 1: Forum post 250words

part 2: Reply to two classmate post Part 1. The question needs to be answered with at least 250 words.
List the purposes and uses of the statement of cash flows and discuss the three activities that the
statement of cash flows depicts.
Instructions: No less than 250 words. In-text citations and references require using APA format
Plagiarism check will be conducted.
Part 2. Reply to this two post 100words.
Post 1:
Good evening everyone,
List the purposes and uses of the statement of cash flows and discuss the three activities that the
statement of cash flows depicts.
This week we learned about the statement of cash flows, also known as the cash flow statement,
and its purposes and uses. The statement of cash flows was first issued by the Financial Accounting
Standards Board in November of 1987 as the Statement of Financial Accounting Standards No. 95
and is now one of the major financial statements issued by a company. The cash flows statements
purpose is to report the inflows and outflows of cash in a company during a period. Also, another
purpose of the cash flow statement is to report on the investing and financing activities. The three
activities that the statement of cash flows depicts are the operating, investing, and financing
activities. The operating activities include the inflows and outflows of cash from the company’s
business of buying and selling goods, providing services, etc. Cash flow from investing activities
would be the items on the statement that report an overall change of position in a company’s money
from investment gains, loss, and/or changes. Financial activities are reported on the statement of
cash flow showing the activities a company takes on to achieve their economic goals which would
include selling and repurchasing stock, repaying debt, etc all involving creditors and owners. A cash
flow statement is used to evaluate a company by the information the statement provides during a
period about cash receipts, payments, and the net change in cash occurring from the operating,
investing, and financial activities. This information is most useful to the management of a company,
those investing, creditors, etc. because it ultimately shows the financial health of a company.
-Miranda
Post 2:
Hi Professor and Class,
This week we are writing about statement of cash flows. A statement of cash flows keeps track of how
much cash is coming in and out a business during its designated accounting period. It also tells how the
cash was generated or where it came from and how the cash was used (Statement of cash flows, 2017).
These statements are usually divided into categories. These categories include, operating, investing, and
financing. These operating activities are things such as cash receipts from customers or interest earned.
There are also outflow recordings from operating. Such as, paying income tax. Investing inflows and
outflows are things such as money from selling equipment and purchasing new equipment. The financing
inflows and outflows would be cash borrowed or payment of cash dividends to the stockholders (sections
of statement of cash flows, 2017).
The information in the cash flows statement helps investors and creditors assess different aspects of the
business. Such as, the ability to generate positive future net cash flows, meet obligations, pay dividends,
need for external financing and it will also show the reason there could be differences between the net
income and associated cash receipts and payments (Hermanson, Maher, & Edwards, 1970).
Taryn
Reference
Hermanson, R., Maher, M., & Edwards, J. (1970, January 01). Accounting Principles: A Business Perspective,
Financial Accounting (chapters 9-18) : Roger H. Hermanson : Free Download, Borrow, and Streaming. Retrieved
February 5, 2019, from https://archive.org/details/ost-business-tbq_pa_accounting_chpt_9_18/page/n395
Statement of cash flows and the purpose of its preparation. (2017, January 10). Retrieved February 5,
2019, from https://www.accountingformanagement.org/importance-and-use-of-statement-of-cash-flows/
Sections of the statement of cash flows. (2017, January 10). Retrieved February 5, 2019, from

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