Analyzing Cash Flow

Overview/Description
 Would a family survive if it didn't know where its available cash was coming from, how much cash it had to spend, or how to get more cash for its needs? If you answered no, you are right. Just like a family that has to understand cash issues for survival, a business also has to understand information about its usable cash in order to sustain its life. This course will teach you how to read, and create a cash flow statement. It will also show you how to analyze beyond the numbers to show how management decisions effect the cash flow of a company.

Target Audience
 This course is targeted specifically for business managers, financial professionals, and other business professionals who have the need to understand financial statements.

Expected Duration
4.5 hours

Lesson Objectives:

Cash Flow and Performance

  • recognize the benefits of using cash flow figures to analyze the financial performance of a business.
  • distinguish between a cash basis method and an accrual basis method of reporting financial statements.
  • decide which method of determining cash flow is utilized by a business, given a scenario.
  • identify management decisions that are appropriate for a business experiencing a growth state or a decline state.

    • Operating, Investing and Financing Activities

  • recognize the value of a Cash Flow Statement for providing insight into a company's operating, investing, and financing activities.
  • determine business situations that might explain changes in cash flow from operating activities.
  • determine business situations that might explain changes in cash flow from investing activities.
  • determine business situations that might explain changes in cash flow from financing activities.

    • Net Income, Cash Flow and Valuation

  • recognize the importance of using financial information to implement positive cash flow strategies and management.
  • use the three financial statements to identify problem areas and potential solutions in cash flow management.
  • use discount rates to value assets.

    • Course Number: FIN0255