In week three’s class we started off with a team activity labeled “Shark Tank”. The activity was modeled after the TV show in which entrepreneurs present their business model or invention to a panel of wealthy business tycoons and ask for a monetary investment in an exchange for a stake in the company. Our team really enjoyed this activity because it allowed us to freely and creatively go about developing a business model we all could agree on. The activity also allowed us to gain a better understanding of bonds along with many other subject areas we had covered in the previous weeks. Following the ‘shark tank’ activity we as a class continued to discuss the topic of bonds and also hit on some key points throughout chapters eleven and twelve.
Week four covers chapters thirteen and fourteen and focuses on the statement of cash flows and the analysis of financial statements. The statement of cash flows reports a companies flow of money, both in and out, resulting from their operating, investing, and financial activities during that company’s reporting period. The statement of cash flows is an important tool for individuals both in and outside of the company. Because the statement of cash flows shows how cash is coming in and out of the company, it allows for a more transparent look into a company’s operating activities. This transparency allows creditors and investors to make the appropriate decisions when it comes to investing or calculating a company’s ability to pay back debts and move forward. In order to form a statement of cash flows you need to have three things. First would be comparative balance sheets to analyze the difference between the beginning and end of the period. Second you would need a current income statement to shows how cash was used and gathered in that period. And finally you would need any additional paperwork that would better assist in showing the flow of cash, both in and out, within that period.