Cash Flow -Ford Motor Company

872 Words4 Pages
Cash Flow: Ford Motor Company 2012 A cash flow statement describes how cash is the generation and used in areas in order for a company to have success or to move it into an area that will decrease the effect on the company net income. With the statement of how cash flows through a company and how it is generated gives potential and current investors the financial stability of the company to meet any future obligations and give a return on their investment. In this essay we are going to look into the cash flow statement of Ford Motor Company for the year 2012 to determine the effectiveness of the statement that was made above. Similar to an income statement, a cash flow statement show the results of operations through a specific period of time and include investing, financing, and operating activities. It “details how cash flowed into and out or sale of long-term assets, and financing, which could include taking on a new loan or issuing stock”, (Epstein, 2014, Sec. 4.1). Cash flow is a result of a company’s normal daily activities of operating a business such as in the case of Ford Motor Company is the production, sales, delivery and financing of their automobiles. “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” (Combs, 2014). The last item that is listed on Ford’s cash flow statement is financing activities that include things or transactions that will affect liabilities that are long-term and the equity in stockholders accounts that include the pay out of dividends to these stockholders. This type of activity show the improvement in the capital assets and repayment of interest and principal balances between the investors in Ford Motor and the company itself. All

More about Cash Flow -Ford Motor Company

Open Document