1. Post the net cash flows from each of the three activities (operating, investing, and financing) for
the most recent three years from your selected company's Cash Flow Statement. What does this
information tell you about your company?
http://finance.yahoo.com/q/cf?s=WMT+Cash+Flow&annual
Solution
Answer:
The cash flows from operating activities indicates how much cash the company generated from
its core business, as opposed to peripheral activities such as investing or borrowing. This is the
area when we focus most of our attention on because it paints the best picture of how well a
firm's business operations are producing cash that will ultimately benefit shareholders.
In the given problem cash flow from operating activities is increasing in year 2015 as compared
to other years than it indicates company generated cash flow from their business efficiently.
Cash from investing activities is a section of the cash flow statement that provides information
regarding a company's purchases or sales of capital assets.
In the given problem cash flow from investing activities is decreasing in year 2015 as compared
to other years than it indicates company purchase asset less as compared to other years.
The financing activity in the cash flow statement focuses on how a firm raises capital and pays it
back to investors through the capital markets. These activities also include paying cash
dividends, adding or changing loans, or issuing and selling more stock.
In the given problem cash flow from financing activities in year 2015 is increasing as compared
to other years it indicates company has paid more dividend ,loan repayment.
Particulars 2015 2014 2013
Cash flow from operating activities 28564000 23257000 25591000
Cash flow from investing activities -11125000 -12526000 -12637000
Cash flow from financing activities -15071000 -10789000 -11946000

2. Total cash flow from all activities 2368000 -58000 1008000
Change in cash & cash equivalent 1854000 -500000 -1231000
Effect of exchange rate changes -514000 -442000 223000