(BQ) Part 2 book "Accouting" has contents: Statement of cash flows, managerial accounting, financial analysis - The big picture, job order costing, process costing, process costing, budgetary planning, budgetary control and responsibility accounting, standard costs and balanced scorecard,.and other contents. | Find more at 12 Rudi Von Briel/PhotoEdit CHAPTER ✓ ● The Navigator • Scan Learning Objectives • Read Feature Story • Scan Preview • Read Text and Answer Do it! p. 630 p. 639 p. 643 • Work Using the Decision Toolkit • Review Summary of Learning Objectives • Work Comprehensive Do it! p. 659 STATEMENT OF CASH FLOWS LEARNING OBJECTIVES After studying this chapter, you should be able to: 1 Indicate the usefulness of the statement of cash flows. • Answer Self-Test Questions 2 Distinguish among operating, investing, and financing activities. • Complete Assignments 3 Explain the impact of the product life cycle on a company’s cash flows. • Go to WileyPLUS for practice and tutorials 4 Prepare a statement of cash flows using the indirect method. 5 Use the statement of cash flows to evaluate a company. Read A Look at IFRS p. 685 ✔ ● The Navigator 624 Find more at Feature Story Companies must be ready to respond to changes quickly in order to survive and thrive. This requires careful management of cash. One company that managed cash successfully in its early years was Microsoft. During those years, the company paid much of its payroll with stock options (rights to purchase company stock in the future at a given price) instead of cash. This conserved cash and turned more than a thousand of its employees into millionaires. In recent years, Microsoft has had a different kind of cash problem. Now that it has reached a more “mature” stage in life, it generates so much cash—roughly $1 billion per month— that it cannot always figure out what to do with it. At one time, Microsoft had accumulated $60 billion. The company said it was accumulating cash to invest in new opportunities, buy other companies, and pay off pending lawsuits. Microsoft’s stockholders complained that holding all this cash was putting a drag on the company’s profitability. Why? Because Microsoft had the cash invested in very low-yielding government .
