Cash Flow Statement custom essay

1. Click here to access the Cash Flow Statement for XYZ Company. After studying the information in the Cash Flow Statement, please answer the following questions: Did XYZ Company manage its cash flows better in 2012 than it did in the previous year? Explain and justify your answer using knowledge and materials gained from the reading materials presented in this phase.
2. Suggest at tleast two areas where the company might be able to improve its cash flow activities in the upcoming year. Be specific in your recommendations and explain their potential impact (positive and/or negative) on the company.
3. Is the Cash Flow Statement by itself a sufficient source when trying to forecast cash requirements for the following period (month, quarter, year, etc.)? If not, identify other financial statements that may be needed and explain why.
4. The CEO of XYZ Company tells you that the Chief Financial Officer has forecast operating income to increase by 1% in 2013. The Board of Directors would like to increase the total 2013 dividend payments by 10% over the total Dividends Paid in 2012. Except for the 2013 Cash and Cash Equivalents, Beginning of Year amount of $2k (and any changes in dividend payments the Board of Directors might make), all other figures in the Cash Flow Statement are expected to remain the same. After the negative cash flow outcome (-$10k) for the period ending Decemeber 31, 2011, the CEO and the Board want to maintain a positive year-end annual cash position of at least $10,000 going forward.
Prepare a new Cash Flow Statement for XYZ Company, ending on December 31, 2013. Can the Board authorize a 10% increase in dividends paid in 2013 and still meet the targeted year-end cash position for the company? If not, what is the largest percentage increase (in whole numbers) that will meet this target? Please justify your answer with calculations taken from your completed worksheet.