I’m trying to study for my Economics course and I need some help to understand this question.
Respond to your peer in a minimum of 175 word
I chose to review the financial statements AMC Theaters. A cash flow statement is a statement of cash flow and provides data regarding all cash a company receives from its ongoing operations and investment sources. It provides data regarding all cash inflows a company receives from its ongoing operations and external investment sources. It also includes all cash outflows that pay for business activities and investments during a given period. I was able to gather the information from Market Watch for this entertainment holding co. I don’t exactly know how to read a cash flow chart but I hope to learn and do so in this class. AMC theaters, world’s largest cinema operator took a huge hit. As so many companies have been affected because of the pandemic, AMCs cash flow was in the negative with a decrease in the net income beginning in March 2020.
According to reports, AMC lost 561 million in one quarter with revenue down 100 percent. The pandemic kept 630 U.S. theaters closed since mid-March and their revenue was $18.9 million during the three months that ended in June, down 99% from the same period a year ago. The second quarter was worse and the company lost 5.38 a share. Although they offered some movies on demand, they still had to take a cut of its revenue. There are plans to reopen 100 of its locations with movies showing opening day for 15 cent a ticket. I hope to see it come back strong as with many companies effected by the pandemic.