5 discussion questions answers need to be atleast 250 words each

/in /by

Analyzing the Statement of Cash Flows

Using the table below, explain the difference between net income and cash flow from operating activities for Techno in 2009 and analyze their cash flows for 2008 and 2009.

(in thousands)

2009

2008

Net income

$ 316,354

$ 242,329

Noncash charges (credits) to income

Depreciation and amortization

68,156

62,591

Deferred taxes

15,394

22,814

$ 399,904

$ 327,734

Cash Provided (Used) by Operating Assets and Liabilities:

Receivables

(288,174)

(49,704)

Inventories

(159,419)

(145,554)

Other current assets

(1,470)

3,832

Accounts payable, accrued liabilities

73,684

41,079

Total Cash Provided by Operations

$ 24,525

$ 177,387

Investment activities

Additions to plant and equipment

(94,1760)

(93,136)

Other investment activities

14,408

(34,771)

Net investment activities

($ 79,768)

($ 127,907)

Financing activities

Purchases of treasury stock

(45,854)

(39,267)

Dividends paid

(49,290)

(22,523)

Net changes in short-term borrowing

125,248

45,067

Additions to long-term borrowings

135,249

4,610

Repayments of long-term borrowings

(250,564)

Net financing activities

$ 165,353

($ 262,677)

Increase (decrease) in cash

$ 110,110

($ 213,197)

Beginning cash balance

78,114

291,311

Ending cash balance

$ 188,224

$ 78,114

Discussion question 2

The Quality of Financial Information

Referencing this week’s readings and lecture, describe the quality issues related to reporting revenue. What is the importance of understanding various inventory valuation methods in determining the quality of reported profits?

Discussion question 3

Conflicts with GAAP

Even though firms follow the accounting rules (GAAP) when presenting their financial statements, it is still possible for conflicts of interest to exist between what management wants investors and creditors to see and the economic reality of transactions. Explain how this can occur.

Discussion 4

Financial Ratios

Referencing this week’s readings and lecture, what are the limitations of financial ratios? Classify your answer into at least the following categories: liquidity ratios, activity ratios, leverage ratios, and profitability ratios.

Discussion 5

Financial Analysis

R.E.C. Inc.’s staff of accountants finished preparing the financial statements for 2010 and will meet next week with the company’s CEO as well as the Director of Investor Relations and representatives from the marketing and art departments to design the current year’s annual report. Write a paragraph in which you present the main idea(s) you think the company should present to shareholders in the annual report. Why do you think those ideas should be included?

Each questions answer needs to be at least 250 words.

 
Do you need a similar assignment done for you from scratch? Order now!
Use Discount Code "Newclient" for a 15% Discount!