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An Analysis of Patterns from the Statement of Cash Flows: Various Aspects

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An Analysis of Patterns from the Statement of Cash Flows: Various Aspects
In the article “An Analysis of Patterns from the Statement of Cash Flows”, the writers Benton E. Gup, William D. Samson, Michael T. Dugan, Myung J. Kim, and Thawatchai Jittrapanun discuss some of the various aspects of the Statement of Cash Flows. Prior to 1987, the Statement of Cash Flows was not a mandatory portion of financial statements (73). On a Statement of Cash Flows, there can be three types of cash flows: operating activities, financial activities, and investing activities; these activities can have either a positive or negative sign (73).
From 1971 to 1987, the Statement of Changes in Financial Position was used instead of the Statement of Cash Flows (73). Regardless of current requirements, several variations are seen in the organization of the Statement of Cash Flows due to stimulated investigation to find more beneficial structures (73). With the positive or negative outcomes of all the cash flow activities, lots of information can be gathered from the various patterns (73). There can be eight different possibilities when it comes to cash flow arrangements (74). Operating activities comes from in-house events such as gaining assets, repaying liabilities as well as distributing dividends to stockholders (74). Investing activities are based on cash arrivals from funding as well as asset growth (74). Financing activities are cash flows gathered by operating events that provide money to pay back various people such as investors and creditors (74). The first format of cash flows is positive on all activities (74). This is not a normal pattern as all are gaining some earnings. The company in question would be earning a profit while selling some of their assets as well as acquiring more debt and leverage (74). The second format is positive, negative, and negative (operational activities, investment activities, financial activities) , which means the company is earning a profit while putting some money into investments as well as paying off
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