Omm 622 Week 4 Assignment Cash Flow

OMM 622 Week 4 Assignment Cash Flow

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OMM 622 Week 4 Assignment Cash Flow

The generating of cash and how it is used during the period of time allows for cash to be disbursed in areas that will help the company succeed or to move it around to decrease areas that will affect the company’s net income. With this cash flow statement investors is able to see the effects on the company’s financial position and if they are able to meet future obligations when necessary.

Operating Activities

Normal daily operating activities allows for companies to generate a cash flow resulting from producing and delivering goods or providing service. This inflow can consist of many transactions such as, “cash receipts for reimbursement of operating transactions or cash sales from sales of goods and services including receipts from collection of accounts receivable and an outflow of cash payments to suppliers of goods and services, (Categories for classifying cash transactions, 2014). With this flow of transactions, operating activates allows for the conversion of items reported from an accrual basis to cash. These fluctuations are carried out by using the adjustments in the balances of present asset and present liability accounts.

Investing Activities

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