How do you define cash? An organization can do this in several ways. In this week’s Discussion, you will take a look at the financial statements of a public company to determine how the company defines cash, and discuss this with your colleagues. Are there any discrepancies between the balances on the balance sheet versus the statement of cash flows? Why?
Refer back to the public company you selected in the Week 1 Discussion. Locate that company’s balance sheet and statement of cash flows.
To help you think about how the different ways cash can be defined, watch Always Accountable, episode 7 in this week’s Resources. In this video, Sharon Hu, CFO of the EarthShare Ice Cream Company investigates why the company’s operating cash flow is very low despite high sales.
With these thoughts in mind:
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