WEEK 4 DISCUSSION TWO CASH FLOW STATEMENT

Techno Company Cashflow Statement

In 2008 the net income for Techno Company was $242.329 billion in the following year;

the net income increased to $316.354 billion, representing a 30.54% increase. Various items in

the operating activities can explain the rise in net income. In 2009, the net cash flows from

operating income decreased from $177.387 billion in 2018 to $24.525 billion.

The change in net operating activities was a result of an increase 479.78 % in receivable

and 9.52% inventories in 2009. The two items represent the highest outlay of cash from the

company. The cash provided by operation decreased from $177.387 billion in 2008 to $24.525

billion. In the same period, the net payable increased from $41.079 billion to $73.684 billion,

which resulted in positive operating cash flow. Other current assets decreased from $3,832

million in 2008 to -$1,470 million in 2009.

Other items that didn’t affect the cash flow include the deprecation and amortization that

increased from $62.591 million in 2008 to $68.156 billion. The differed taxes decreased from

$22.814 billion in 2018 to $15.394 billion in 2009. The two items have not affected cash flow

since they are non-cash items. However, the items are considered when accounting for net

income, which makes cash flow analysis very critical.