New York University Cash Flow Statement and Operating Cash Flows Essay Is the company improving or worsening over time? How does it compare to its competitor? Comment on any trends you observe. The comments should be about ONE page. Based on cash flow statement information, answer the following questions: Does the discrepancy between net income and operating cash flows grow larger or smaller? What are the three largest adjustments to net income, other than depreciation? Did the company make any new investments in the past year? Describe them.Did the company pay any dividends? If so, how much? Did the company buy back any shares of its own? If so, how many shares? What is the total dollar value? A. CASH FLOW STATEMENT
Prepare a three-year horizontal analysis* for the cash flow statements listed
below for your company and its competitor. You should calculate the percent
change from one year to another.
*You may need to obtain previous years’ financial statements.
Ford
Suggested Format
2016
2017
2018
2016
vs. 2017
2017
vs. 2018
Operating Cash Flows
Net Income
4,596
7,602
3,677
Depreciation
& 8,717
amortization
Deferred income taxes
1,478
8,453
8,308
-232
-197
Stock
based 210
compensation
Change in working 1,476
capital
Accounts Receivable
-2,855
246
191
1,997
1,306
-2,297
-2,239
Inventory
-815
-959
-828
Accounts Payable
–
–
–
Other working capital
12,800
11,047
7,237
Other non-cash items
-1,000
65
17
Net cash provided by 19,792
operating activities
Investing Cash Flows
18,096
15,022
Investments
property, plant
equipment
Acquisitions, net
-7,049
in -6,992
and
–
Purchases
of -31,428
investments
Sales/Maturities
of 30,179
investments
Other
investing -17,111
activities
65.405%
increase
3.0286%
decrease
115.697%
decrease
17.143%
increase
35.298%
increase
19.545%
increase
17.669%
decrease
–
48.369%
decrease
1.715%
decrease
15.086%
increase
22.358%
decrease
34.602%
decrease
2.525%
increase
13.66%
increase
–
13.695%
decrease
106.5%
increase
8.569%
decrease
34.489%
decrease
73.846%
decrease
16.987%
decrease
-7,785
0.0082%
decrease
10.441%
decrease
–
–
–
–
-27,567
-17,140
29,998
20,885
-14,774
-12,221
12.285%
increase
0.0059%
decrease
13.658%
increase
37.824%
increase
30,369%
decrease
17.28%
increase
Net cash used for -25,352
investing activities
Financing Cash Flows
Debt repayment
-38,797
-19,392
-16,261
16.33%
increase
16.146%
increase
-40,770
-44,172
Common stock issued
Common
stock -145
repurchased
Dividends Paid
-3,376
-131
-164
-2,584
-2,905
Other
financing -49
activities
Net cash provided by 7,458
financing activities
-151
-192
3,394
-122
5.085%
decrease
9.655%
increase
23.459%
increase
208.16%
decrease
54.492%
decrease
8.344%
decrease
25.19%
decrease
12.423%
decrease
27.152%
decrease
103.59%
decrease
General Motors
Suggested Format
2016
2017
2018
2016
vs. 2017
2017
vs. 2018
140,989%
decrease
17.804%
increase
476.882%
increase
–
307.402%
increase
11.484%
increase
101.029%
decrease
–
588.356%
decrease
209.105%
increase
237.5%
increase
110.435%
decrease
18.350%
increase
48.23%
increase
4.733%
increase
54.362%
increase
64.907%
decrease
22.955%
decrease
48.344%
decrease
0.0062%
increase
258.547%
decrease
11.958%
decrease
Operating Cash Flows
Net Income
9,427
-3,864
8,014
Depreciation
& 10,408
amortization
Deferred income taxes
1,886
12,261
13,669
10,880
-112
Stock
based compensation
Change in working -438
capital
Accounts Receivable
-1,285
–
–
-3,015
-1376
1,402
492
Inventory
-320
440
339
Accounts Payable
3,469
-362
-537
Other working capital
-12,621
-10,305
-10,241
Other non-cash items
-904
-468
-1,678
17,328
15,256
Net cash provided by 16,545
operating activities
Investing Cash Flows
Investments
property, plant
equipment
Acquisitions, net
in -29,166
and
-27,633
-25,497
5.256%
increase
7.729%
increase
-809
-41
-83
-15,444
-5,503
-2,820
11,743
9,007
5,108
-4,524
-6,569
-8,501
-35,643
-27,572
-20,763
95.932%
increase
64.368%
increase
23.299%
decrease
45.203%
decrease
22.644%
increase
102.439%
decrease
48.755%
increase
43.289%
decrease
29.411%
decrease
24.695%
increase
-23,815
-33,592
-33,323
Common stock issued
Common
stock -2,500
repurchased
Dividends Paid
-2,368
-4,492
2862000
-190
-2,233
-2,242
Other
financing -117
activities
Net cash provided by 17,139
financing activities
-305
-640
12,410
11,454
41.054%
decrease
79.68%
decrease
5.701%
increase
160.684%
decrease
27.592%
decrease
0.008%
increase
95.77%
increase
0.004%
decrease
109.836%
decrease
7.703%
decrease
Purchases
of
investments
Sales/Maturities
of
investments
Other
investing
activities
Net cash used for
investing activities
Financing Cash Flows
Debt repayment
Is the company improving or worsening over time? How does it compare to its
competitor? Comment on any trends you observe. The comments should be
about ONE page.
A. Based on cash flow statement information, answer the following
questions:
1. Does the discrepancy between net income and operating cash flows
grow larger or smaller?
2. What are the three largest adjustments to net income, other than
depreciation?
3. Did the company make any new investments in the past year? Describe
them.
4. Did the company pay any dividends? If so, how much?
5. Did the company buy back any shares of its own? If so, how many
shares? What is the total dollar value?
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