Reporting and Analyzing Cash Flows Assignment Example | Topics and Well Written Essays - 500 words

Reporting and Analyzing Cash Flows - Assignment Example However, the costs of the inventory has increased, which will cause growth of the amortization depreciations (Murphy, 2000). On the other hand, if the equipment is used more effectively, the overall production and operation costs will lower. This non-cash investment is intended to improve the overall performance of the Popowich Inc. Issuing additional shares is the double-end stick. On the one hand, it depreciates the already existing stocks, while on the other hand this will help to improve the company’s positions on the market by attracting investments. Financial activities of the company are mainly associated with the time and money restrictions. Nevertheless, the cash and non-cash investments of the Popowich Inc prevent the company from stagnation. Regardless of the fact that the further financial plans are unknown, if the existing tendency is preserved, the company will shorten the long- and short-term notes that will help to decrease the liabilities. Additionally, the proper capital budgeting will help to control expenditures. As Murphy (2000) emphasizes, the remaining capital expenses are generally graded in accordance with the profitability reported. Hence, the financing activity of the Popowich Inc is based on the capital budgeting model. The long-term liabilities of the company represent the positive tendency, as the company is aimed at shortening these points of the budget. The stockholders’ equities are involved into the strategy of attracting investors. In the light of this fact, it should be stated that the company’s financing activities form the positive