Toggle Nav
My Cart
English
Español
Menu
Account
  • Log in / Register
    • Language
    English
    Español

    Exercise 2: Industry Characteristics and the Statement of Cash Flows

    Maureen McNichols, Jaclyn Foroughi

    • Reference: SGSB-A212-E

    • Year: 2015

    • Number of pages: 4

    • Geographic Setting: United States

    • Publication Date: Jan 4, 2015

    • Source: Stanford Graduate School of Business (USA)

    • Type of Document: Case

    • Industry Setting: various

    Grouped product items
    Format Language Reference Use Qty Price
    pdf English SGSB-A212-E
    As low as €8.20

    You already have a subscription
    To order please contact the person in charge of academic purchases in your university.
    You'll be able to order once your profile has been validated.

    Description

    Different industries present different trends in cash flows. At the same time, firms within the same industry but at different stages of the firm or product life cycle will have significantly different breakdowns for each section of the cash flow statement. This case presents common-size statements of cash flows for 10 firms in various industries. All amounts in the common-size statements of cash flows are expressed as a percentage of cash flow from operations (cash flow from operations is positive for each firm in this exercise).

    Learning Objective

    By presenting the common-size statements of cash flows for a variety of firms at distinct stages of the firm or product life cycle, students are provided with an opportunity to analyze and assess industry characteristics as they relate to the statements of cash flows.

    Keywords

    Accounting Cash flow statements Financial accounting Financial performance Financial statements Fixed assets Working capital