Analysis of Cash Flow Statement

Analysis of Cash Flows Statements By Song Hanxiao
Pace University – New York Campus
MBA 640, 72052
Fall 2011
John Paul
Required Research Paper

Contents Abstract --------------------------------------------------------------------------------------------------------3 | I. Introduction of importance of Cash Flows statements -------------------------------------4 | II. Function of Cash Flow Statements -----------------------------------------------------------5 | III. Analysis of Cash Flow Statement ------------------------------------------------------------7 | 1. Analysis of Repayment Ability ----------------------------------------------------------7 | 2. Analysis of Payment Capacity -----------------------------------------------------------8 | 3. Analysis of Profit Ability -----------------------------------------------------------------9 | IV. Conclusion -------------------------------------------------------------------------------------10 |

Abstract
In the context of this paper, first it introduces the importance of cash flow statement and in the second section it tells the function of cash flow statements. And the most important part is analysis of cash flow statements through several evaluation methods. And at the last section , this paper conclude some problems which should be focused on when analyzing cash flow statements.
Key words: cash flow statement, ratio, inflows, outflows, operating, investing, financing activities

I. Introduction of importance of Cash Flows statements
The statement of cash flows is one of the main financial statements. It organizes and reports the cash generated and used in the following categories: operating activities, investing activities, financing activities, supplemental information. It objectively describes the expense and collection in one company’s accounting period and cash inflow and outflow from certain economic