MKT 100 Chapter 12: Chapter 12, Cash 12-1 and 12-3 for Interpreting Cash Flow Statements.docx
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MKT 100 Full Course Notes
Verified Note
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Case 12-1 reading and interpreting cn"s statement of cash flows lo 2, 5: the section d of the first note in the report is titled cash and cash equivalents. Cash and cash equivalents include highly liquid investments purchased three months or less from maturity: the change in accounts receivable of million was added to net income. The largest use, or outflow, of cash, was the company"s reduction of long-term debt of ,589 million. In the financing activities section of its statement of cash flows, cn reports payments for the purchase of common stock in the amount of ,584 million. This same amount appears on the statement of shareholders" equity in the last column . the company bought back shares of its own during the year. The amount paid for these shares reduces both the company"s cash (and therefore appears on the statement of cash flows) and reduces shareholders" equity.
