Company 's Statement Of Cash Flow Essay examples

Company 's Statement Of Cash Flow Essay examples

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Investor Relations
A. Investor Interest
From a financial perspective, I think it could be a wise decision to invest in Wal-Mart Stores, Inc. However, it is important to realize that all facts should be carefully explored making a decision. They could experience a positive fiscal year this year and a rather poor one next fiscal year. Upon review of the company’s Statement of Cash Flows, the net decrease of $430,000 is comparably small in comparison to the ending Cash balance of $8,705,000. The net income of $15,080,000 for fiscal year 2016 is a little less than the $16,814,000 net income received in fiscal year 2015, but the brand attributed the decrease to bad management decisions and lack of sales. Net cash provided by operating activities is at a respectable $27,329,000 shows that Wal-Mart Stores, Inc. is able to manage the company’s outflows with its inflows. However, the Net Cash Used in both Investing and Financing Activities are a tad bit high with figures of ($10,675,000) and ($16,122,000) respectively. The higher figures result from company acquisitions and brand expansions. Wal-Mart Stores, Inc. wants to open another 200 plus stores in the next few years, so lease obligations will increase exponentially. By investing into Wal-Mart Stores, Inc., my contribution could very well assist the company by increasing equitable capital and lowering the necessity for higher outflows (Consolidated Statement of Cash Flows 2016).

Wal-Mart Stores, Inc.
To: C. Douglas McMillon, CEO
From: Nicole Auger, Controller
cc: Lindsey Applebee, Assistant
Date: July 10, 2016

Re: Statement of Changes in Financial Position

Wal-Mart Stores, Inc. CEO, C. Douglas McMillon is requesting a thorough review of fiscal year 201...

... middle of paper ...

...res, Inc. could also appeal to more investors to increase capital to lower costs of expansion (Annual Report 2016 2016) (Consolidated Statement of Cash Flows 2016).

Wal-Mart Stores, Inc. is a million- dollar company who is succeeding in the discount retail industry. However, there is always room for improvement when it comes to measuring a company’s inflows and outflows. Companies use the Statement of Cash Flows to effectively compare what impacts the Cash account and develop ways to improve the company’s financial position. If the company wishes to see a net increase in cash, they should consider finding alternatives ways to collect receivables, reduce payables, and seek additional investing opportunities to lower accumulated lease obligations and other financing activities (Consolidated Statement of Cash Flows 2016) (Statement of Cash Flows 2016).

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