Solution Library

Use Of Cash Flow Statement For Performance Analysis


1. For anyone analyzing the performance of an organization, the statement of cash flows is useful because:

  1. It is the only source in financial statements for learning about how cash is generated.
  2. A focus on net income can be misleading if a company has a healthy profit, but is not converting profit into cash.
  3. It reveals why a company was able to generate a profit.
  4. Both (a) and (b).

2. I. The cash conversion cycle of a firm can be improved by decreasing the days inventory held and days payable outstanding, while decreasing the average collection period.

II. The DuPont System helps the analyst see how a firm’s decisions and activities over an accounting period interact to produce an overall return to the firm’s shareholders,, the return on equity.

  1. Only Statement I is true.
  2. Only Statement II is true.
  3. Both Statements I and II are true.
  4. Both Statements I and II are false.



The multiple questions belong to Finance. The 1st question discusses about the analysis of cash flow statement of a firm and the 2nd question is about whether or not two statements are true or false.

Total Word Count NA

Download Full Solution


  • HWA

    this is a very good website

  • HWA

    I have 50 questions for the same test your page is showing only 28

  • HWA

    hi can you please help or guide me to answer my assignments. thanks

  • HWA

    hi can anyone help or guide me to my assignments. thanks

  • HWA

  • HWA

    This solution is perfect ...thanks

  • HWA

    Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

  • HWA

    Perfect bank of solution. 

  • HWA

    great !

  • HWA
    Paul Brandon-Fritzius

    thanks for the quick response. the solution looks good. :)

  • HWA
    tina Johnson

    thnx for the answer. it was perfect. just the way i wanted it. 

  • HWA

    works fine.