Week 1 DQ Response

I’m studying for my Economics class and don’t understand how to answer this. Can you help me study?

Respond to your peer in a minimum of 175 words

The cash flow statement is a financial summarization of the amount of cash a company makes and distributes. The cash flow statement indicates how well a company manages its cash and how well the company generates cash to pay its debt obligations and fund its operating expenses.

The company that I chose to review was Macy’s. As I looked at Macy’s cash flow statement, I noticed that 2017 was a down year for the company netting only $619 m. From 2012-2016 and from 2018-2019, the company’s net income was well over 1 billion dollars. The cash flow statement shows me how much income is coming in through sales, investments. It also shows me money that is going out in operating activities. I am able to determine stock-based compensation as well as how much common stock dividends are paid. All of the financial activity of Macy’s, from accounts payable to accounts receivable are found within the cash flow statement.

Unlike a bank statement, only showing the amount being accumulated and withdrawn, I can determine the success of a company by looking at the past and present cash flow statement which gives me an annual review of the entire financial record.

Macy’s Cash Flow Statement 2005-2020(2020). https://www.macrotrends.net/stocks/charts/M/macys/cash-flow-statement

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