Analysis of Cash Flow Statement Part 2 Introduction To successfully operate the business operations organizations require funds which might be arranged by issuing shares or borrowing funds from the market. Borrowing funds by selling bonds debentures or loans necessitate organizations to pay a fixed amount in the form of interest whereas issue of share requires payment of dividends. The values of borrowings and funds raised by issuing shares are shown in liabilities of the balance sheet in different heads/sub-heads including shareholders’ equity current liabilities or long-term liabilities. The stockholder’s equity includes the amount of funds that were financed into the business by the investors (shareholders) through issuing shares (Kimmel Weygandt & Kieso 2010). Discussion The stockholders’ equity is identified to be an important component of the balance sheet as the valuation of assets always equivalent to the amount of liabilities and amount of stockholders’ equity (Kimmel et al. 2010). assessment of Apple Inc. 2014 financial report reflected that shareholders’ of the organization able to acquire profitable returns on their investment as the organization pays considerable funds in the form of dividends and EPS as well as ROCE noted to be strong. Reference Apple Inc. (2014). Annual report 2014. Retrieved from investor.apple.com Kimmel P. D. Weygandt J. J. & Kieso D. E. (2010). Financial accounting: Tools for business decision making. US: John Wiley & Sons. Megginson W. L. Lucey B. M. & Smart S. B. (2008). Introduction to corporate finance. UK: Cengage Learning EMEA. Nath V. (2014). Out of aces? Fifty steps to financial acuity. New York: Xlibris Corporation. Needles B. E. & Powers M. (2013). Principles of financial accounting. US: Cengage Learning. Ryan B. (2014). Finance and accounting for business. UK: Cengage Learning EMEA Warren C. S. Reeve J. M. & Duchac J. (2017). Financial accounting. US: Cengage Learning. [...]
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