In the long run, a company must generate positive net cash flows from operating activities to survive. A business that has negative cash flows from operations will not be able to raise cash indefinitely from other sources and will eventually cease existing. Many creditors and stockholders are reluctant to invest in companies that do not generate positive cash flows from operations. However, some investors will invest in companies with negative cash flows from operations due to an optimistic future outlook for the company. Thus, investors have invested millions of dollars in Internet companies that have negative cash flows from operations.
a. Visit Coca-Cola’s Internet site ( www.coke.com ) and select “Investors.” Under “Financial Information,” select the most recent SEC 10K filing or annual report. View the Consolidated Statements of Cash Flows.
b. Visit Amazon.com ’s Internet site ( www.amazon.com ) and select “Investor Relations” at the bottom of the page, then click “SEC Filings.” Select the most recent SEC 10K filing or annual report and view the Cash Flow Statement.
c. Compare the Net Cash Provided by Operating Activities for each company. Which company has higher Net Cash Provided by Operating Activities? Speculate why one company has much higher Net Cash Provided by Operating Activities than the other.
d. What type of company may have Negative Net Cash Provided from Operating Activities?
e. What type of company may have large Positive Net Cash Provided from Operating Activities?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more