Stock and flow

While most people get excited about trading, it is the investor that will triumph in the long run. Anyone who looks for capital gain are classified as a trader. Investors on the other hand focus on building sustainable and longer term cash flow and passive income. An investor will eventually have an upper hand over traders because when an investor acquires an asset. Capital Gain A trader will keep making new trades by buying and selling while a true investor will make one important commitment…

Microsoft, Ballmer and Nokia. On the 8th of July 2015, Satya Nadella undid what is considered one of the biggest mistakes in Microsoft’s history; the acquisition of Nokia. The story starts a couple of years earlier when Steve Ballmer was CEO of Microsoft. Under his leadership, he steered the company in 2011 to negotiate with Nokia on a takeover bid, which was finalized in September of 2013. The Microsoft board fought against the deal but Ballmer (sometimes verbally abusing) disregarded their…

Alcoa Inc. Alcoa reported its fourth quarter and full year 2015 results last week on 11th January 2016. The company made an adjusted net profit of $ 65 million or $ 0.04 per share in the quarter while that of $ 121 million or $ 0.56 per share in the last year. The adjusted EBITDA for the fourth quarter was $ 590 million including $ 71 million of special items. The revenue for the quarter was $ 5.2 billion i.e. 18 % down from the same quarter of 2014 and 6 % down from the previous quarter. The…

Positive cash flow means you are bringing in more cash than is flowing out and with a negative cash flow, you have more cash flowing out than in. The cash flow statement is a key indicator in determining the financial health of a company. “Companies can remain in business without turning a profit but they won’t last for long with a negative cash flow,” (Wagner, 2005, p. 17). We’ve all heard the phrase in business, “cash is king.”…

Cash flow analysis Cash flow analysis is considered to be most important among the financial statements as it helps to identify how strong is company in generating cash for paying its bills, creditors’ suppliers and to make necessary investments. A company may have a strong balance sheet and income statement, but if it doesn’t have enough cash to pay its suppliers /creditors then it will lose its business and finally gets shut down. A positive cash flow means that enough cash is coming to…

Statement of Cash Flows Statement of Cash Flows of the Nice Suit Dry Cleaning Company Parama Sigurdsen University of People, MBA BUS 5110 Unit 5 Written Assignment 1 Statement of Cash Flows Statement of Cash Flows of the Nice Suit Dry Cleaning Company Introduction The cash flow statement of the Nice Suit Dry Cleaning Company had the following data missing: 1. Cash paid out to suppliers and employees 2. Net cash used in…

of current earning and current cash flow in the assessment of future cash flow. Current earning is define as net income or loss of an entity for the current year. Current earning are the difference between all revenues and expenses on the statement of profit and loss and other comprehensive income. It will presented in statement of financial position until they are transferred into retained earnings. Current cash flow are reported in the statement of cash flow that showing the cash inflow and…

Cash Flow: The Direct Method – Arden Group, Inc. Cash is the life blood of a business; having cash, a firm has more buying power, without necessarily having to borrow money. When a firm does borrow money, cash provides some protection against loan defaults. Having cash on-hand is important, “but cash flow indicates an ongoing ability to generate and use cash” (Kokemuller, 2018). One of the key measures of cash is the statement of cash flow, which has become a key financial statement that…

Ayala Land for every P1.00 debt. However, due to the industry where they both belong, it seems like Megaworld is not maximizing its current assets in investing on non-current, in particular real properties which is the nature of the business. CASH FLOW FROM OPERATIONS An accounting item indicating the cash an organization brings in from ongoing, regular business activities, such as manufacturing and selling goods or providing a service. In this paper, we would examine the business activities of…

judgment of whether the enterprise is a family business, not to see whether the enterprise with the family name, or whether there are several relatives in the top leadership of the enterprise, but to see whether there is a family owned, general who owns stocks and have many. This definition emphasizes the ownership of enterprises. Scholars Sun Zhiben will have the right to operate the enterprise as the essential characteristics of family business. He believes that the family enterprise rights as…