Publicly Traded Company 2

PubliclyTraded Company 2


PubliclyTraded Company 2

FordMotor Company cash flows statement encapsulates a portion of thefinancial report dispensed by the company and describe the cashamounts that was generated and used. The concern is in the categoriesof undertakings that make and consume cash. Though the cash flowstatements are deliberated to be less critical than the statementthat represents the income and the balance sheet, it is used as atool for analyzing the performance of the firm which the rest of thefinancial report does not provide. The statement is very useful whena divergence arises between the profits reported and the generatedcash flow from the operations.

CashFlows from the Operations

Theoperating activities cash flows comprises of the activities thatgenerate revenue for Ford Motor Company. Examples would include anincrease or decrease of items such as the accounts receivables, theaccounts payable and the inventories. The section is calculated byadding back the non-cash items to the net profit and the addition ofthe decrease or increase of the working capital items. Ford MotorCompany operating activities cash flow for FY 2015 provided a netcash of $16170 million which represent a cash inflow in the cash flowreport

CashFlows from Investing Undertakings

Theinvesting activities cash flows describe the payment that Ford MotorCompany made in the acquisition of assets measured on the long termbasis and the cash received from disposal of such assets. Examplesinclude the settlement of derivatives and the purchase of marketablesecurities (Hoskin, Fizzell &amp Cherry, 2014). Ford Motor Companyfor the FY 2015 used $26162 million for investing activities whichrepresent an outflow of cash in the cash flows report.

CashFlows from Financing Undertakings

Thefinancing activities heighten those activities for Ford Motor Companythat altered equity or borrowings. Examples include the purchase ofcommon stock and the proceeds that were received after issuing otherdebts. Ford Motor Company financing activities for FY 2015 provided$14322 million which present inflows to the statement of cash flows.

Thethree activities heighten that Ford Motor Company had a net increaseof cash of $3515 million for FY 2015 and a cumulative balance of$14272 million at the end of FY 2015. The perspective indicates thatFord Motor Company short term viability was adequate hence a stableoverall health concerning liquidity.

UnusualItem in the Statement of Cash Flow

FordMotor statement of cash flows for FY 2015 does not have a unique itembecause the statement is prepared and presented to the users underthe guidance of GAAP.


Hoskin,R. E., Fizzell, M. R., &amp Cherry, D. C. (2014).&nbspFinancialaccounting: a user perspective. Wiley Global Education.