Cash Flow Statement Ford Motor Company

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Cash Flow Statement Ford Motor Company

The Statement of Cash Flows
Referencing this week’s readings and lecture, describe the following terms as they relate to the statement of cash flows: cash, operating activities, investing activities, and financing activities. What can creditors, investors, and other users glean from an analysis of the statement of cash flows?

Respond to at least two of your classmates’ posts.

Using the table below, explain the difference between net income and cash flow from operating activities for Techno in 2009 and analyze their cash flows for 2008 and 2009.

(in thousands)20092008
Net income$ 316,354$  242,329
Noncash charges (credits) to income
Depreciation and amortization     68,156      62,591
Deferred taxes     15,394      22,814
$ 399,904$  327,734
Cash Provided (Used) by Operating Assets and Liabilities:
Receivables  (288,174)     (49,704)
Inventories  (159,419)   (145,554)
Other current assets      (1,470)        3,832
Accounts payable, accrued liabilities      73,684      41,079
Total Cash Provided by Operations   $ 24,525$  177,387
Investment activities
Additions to plant and equipment   (94,1760)     (93,136)
Other investment activities      14,408     (34,771)
Net investment activities  ($ 79,768)($ 127,907)
Financing activities
Purchases of treasury stock     (45,854)     (39,267)
Dividends paid     (49,290)     (22,523)
Net changes in short-term borrowing    125,248      45,067
Additions to long-term borrowings    135,249        4,610
Repayments of long-term borrowings   (250,564)
Net financing activities$  165,353($ 262,677)
Increase (decrease) in cash$  110,110($ 213,197)
Beginning cash balance      78,114    291,311
Ending cash balance$  188,224$    78,114

Cash Flow Statement Ford Motor Company
In a two- to three-page paper (not including the title and reference pages), explain the purpose of a cash flow statement and how it reflects the firm’s financial status. Include important points that an analyst would use in assessing the financial condition of the company. Also, analyze Ford Motor Company’s cash flow from its Ford Motor Company 2012 Annual Report (Links to an external site.).