According to Michael Dennis in his book "Credit and Collection Management," the Statement of Cash Flows presents information not available elsewhere in a customer's financial statements. It provides information about cash inflows and outflows from investing activities, operating activities and financing activities (Dennis, 2000).
According to the Yahoo! Finance website, for the fiscal year ended May 31, 2004, Nike reported the following information in its Statement of Cash Flows:
Total Cash Flow from Operating Activities: $1,514,400,000
Total Cash Flows from Investing Activities: $(946,500,000)
Total Cash Flows from Financing Activities $(398,500,000)
Change (increase) in Cash and Cash equivalents at Nike, Inc. of $194,000,000 (Quotes and Info, 2005).
For the fiscal year ended December 31, 2004, Reebok International reported the following information in its Statement of Cash Flows: Total Cash Flow from Operating Activities: $ 175,662,000. Total Cash Flows from Investing Activities: $ (255,180,000). Total Cash Flows from Financing Activities: $ (53,652,000). Change (decrease) in Cash and Cash equivalents at Reebok of $(128,366,000) (Quotes and Info, 2005).
At Nike, the significant internal events included positive cash inflow reported from Operating Activities of $1.514 billion. This was partially offset by cash outflows of $214 million for capital expenditures, $402 million in investments, and an additional $331 million in other cash outflows from investing activities. The two significant items in the Financing Activities were outflows of $179 million in dividends paid, and $166 million involving the purchase of stock.
At Reebok International, the significant internal events included positive cash inflow reported from Operating Activities of $176 million. This was offset by cash outflows from investing activities of $255 million including $198 million associated with the acquisition of The Hockey ...