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Cash Flow Statement Ford Motor Company FINAL

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Cash Flow Statement Ford Motor Company FINAL
Cash Flow Statement - Ford Motor Company
Nancijo C. Emerson
OMM 622 Financial Decision-Making (MFJ1448A)
Professor Martin Cain
December 22, 2014

Cash Flow Statement - Ford Motor Company

What Does Cash Flow Mean?

A revenue or expense stream that changes a cash account over a specific period. Cash inflows usually arise from one of three activities— operating activities, investing activities, and financial. Cash activities outflows result from expenses or investments that a company makes during a specific period of time. This is an accounting statement that is generally called the Statement of Cash Flow and shows the amount of cash that a company has generated and used by a specific period. By calculating non-cash charges (such as depreciation) to the net income after taxes. The cash flow might be attributed to special projects and even to the business. So generally speaking, Cash Flow is comprised of net profit. “There are three types of financial activities detailed in a cash flow statement, which include operating activities, investing activities, and financial activities. A cash flow statement can take two forms: direct format and indirect format” (Cain. 2014).
Cash Flow

The generating of cash and how it is used during the period of time allows for cash to be disbursed in areas that will help the company succeed or to move it around to decrease areas that will affect the company’s net income. With this cash flow statement investors is able to see the effects on the company’s financial position and if they are able to meet future obligations when necessary. “The bottom line of financing activities shows the net cash used to finance the business” (Cain. 2014).
Operating Activities "In each period the firm realizes cash flows from operations, and the difference between cash flows and operating earnings reconcile with the balance sheet accruals" (Feltham, Ohlson. 1995:691). In normal daily operating


References: Cain, M. (2014). Week Lecture. Week 4 - Weekly lecture: Elements of a statement of cash flow. Ashford
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