Comment on the difference between net cash provided by operating activities and net income
Read and complete case study 10-10, “Eat at My Restaurant” in your text. Address the following elements, which are also required elements at the end of the case study:
Comment on the difference between net cash provided by operating activities and net income. Speculate on which number is likely to be the better indicator of long-term profitability.
Comment on the data reviewed for each firm.
Do any of these firms appear to have a cash flow problem?
Your answers should be in an essay form with an introduction and conclusion; ensure you are addressing each element clearly and thoroughly, following these guidelines:
Requirement (a) of the problem should be answered in general terms; you do not need to consider the 3 firms in the case. However, you do need to make a choice and rationalize that choice.
When addressing requirement (b), you should make AT LEAST 4 observations on each firm, focusing on the cash flow ratios provided.
All information should be considered when answering requirement (c). Even if you don’t think any one company is “in trouble,” you should still choose a company and support your choice.
Your submitted paper should be at least 2-3 pages long and written according to APA guidelines.
Solution preview
Introduction
Cash flow statement is a very important financial statement for any given business entity. Ideally, it helps in analyzing four key issues concerning the cash. To start with, it reflects inflow and outflows hence a proper sign of where the money is generated and used in. secondly, it helps to focus on any excess cash realized (Jury, 2012)……………………..
APA
624 words