Chapter 2: Cash Flow Identify: Using the annual balance sheet and the Income Statement, calculate the cash flow identity. To complete this requirement, you need to use your companys income statement information and generate a simplified income statement, as I presented below. The tax dollars in your income statement should be the same tax from your companys income statement.

a) OCF

b) NCS

c) changes in NWC

d) Is the Net working capital negative or positive?

e) Does this indicate any potential difficulty for the company? Why?

f) CFA

g) CFC

h) Is the Cash Flow to Creditors Negative?

i) Explain how this might come about

j) What is the last total dividend paid? refer to the Statement of Changes in Equity

k) Did the company issue new shares? Yes or no. What is the total dollar value? refer to the

Statement of Changes in Equity

l) Did the company repurchase shares? Yes or no. What is the total dollar value? refer to the

Statement of Changes in Equity

m) Based on the information above (from point a to l), what is your opinion regarding the cash

flow of your company?

STATEMENT OF CHANGES IN EQUITY INCOME STATEMENT STATEMENT OF COMPREHENSIVE INCOME BALANCE SHEET STATEMENT OF CHANGES IN EQUITY INCOME STATEMENT STATEMENT OF COMPREHENSIVE INCOME BALANCE SHEET