BUS 251 Lecture Notes - Lecture 5: Money Market Fund, Cash Flow, Income Statement

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Susan Bubra

Document Summary

Stcf recognizes inflows and outflows of cash into operating, investing and financial activities. It is a very important perspective into a company"s performance. The stcf illustrates relationship between other statements. Operating activities: primary focus of user and should generate a positive cash flow meaning a company"s core business operations are generating more cash than it is using. Enable users to examine a company"s decisions regarding the purchase or sale of ppe. This info helps users asses the company"s strategy when it comes to replcing ppe required to continue operating or whether additional assets are being acquired to provide the capacity to grow the company"s operations. Enable users to assess the decisions made by management and/or the board of directors in relation to the company"s debt and equity. They will determine whether the company incurred more debt or repaid principal during the period and whether new shares were issued and whether or not dividends were declared and paid.