In the cash flow statement, classify and explain the purpose of operating activities, investing activities, and financing activities.

Microsoft’s Analysis

Building on what you learned in the last module, you are now ready to pick a publicly traded company using the Yahoo! Finance https://finance.yahoo.com/ website. The company must have been in existence for at least five years. You will submit your choice for instructor approval, as this is the object of your review and analysis for the remainder of the term.

Take a look at your chosen company’s financial statements by visiting the Yahoo! Finance https://finance.yahoo.com/ website. Select your company by typing in the name in the search bar. Then, in the left-hand navigation bar, click on each of the three statement types under the heading “Financials” (i.e., Income Statement, Balance Sheet, and Cash Flow). Save each of the three financial statements as PDF files or copy/paste them into a Word document and turn them in with your assignment write-up.

Using the financial statements of your chosen company, you will classify and explain the purpose of key line items in financial statements. You will specifically address the following:

1) In the income statement, classify and explain the purposes of revenue, gross profit, operating margins, and net income. 2) In the balance sheet, classify and explain the purpose of major asset categories, i.e., current assets, long-term assets, as well as liabilities and equity items. 3) In the cash flow statement, classify and explain the purpose of operating activities, investing activities, and financing activities.

Type your explanations and classifications into a Word document. You do not need to write the information in paragraph format; instead, list them as bullet points.

For additional details, please refer to the Exercise One Guidelines and Rubric document

REQUIREMENTS

SNHU

Accounting

Answer preview…………………

apa 618 words