As you will explore throughout this course, financial data plays a critical role when it comes to making business decisions for an organization. There are four primary financial statements that are used. One is known as the statement of cash flows. For this discussion, assess the characteristics of the statement of cash flows by addressing the following questions:
- List the three primary sections found in the statement of cash flows.
- Explain how the statement of cash flows provides useful information that is not available in the other financial statements.
- Examine how this information can be useful when making business decisions.
- Looking at the financial statement you downloaded for Deere & Company in Part 1, identify the major inflows and outflows of cash for each section of the statement of cash flows.
With financial literacy and skill, you will be better equipped to make wise decisions when it comes to money (either yours or your company’s). Investors review many factors before determining whether to buy stock from a company. To make a wise investment, they analyze a set of key indicators to help them decide if investing in the company’s stock might be profitable.
In this discussion,
- List the key metrics you would consider before purchasing stock in a company.
- List and explain the components of the ratios that would be the most important for you to analyze before making an investment decision.
- Explain why you selected the ratios above.