Concerning Salesforce, Inc. 2018 financials; Does the company use the indirect or direct method for preparing...

Concerning Salesforce, Inc. 2018 financials;
Does the company use the indirect or direct method for preparing the Cash flow statement?
What is the trend in cash from operations for the years presented?
What are the two largest items included in cash from investing activities?

Solutions

Expert Solution

1	Direct or Indirect method :- The main difference between the direct and indirect method Is presentation, most of the organisations uses the indirect method so the Concerning Sales force Inc. may use the indirect method because the most of the companies uses the indirect method of presenting
	few examples to adjustment in indirect method of operating activities
	like adding back the depreciation
	deduct the increase in inventory
	deduct the decrease in accounts receivables

2	Trend from operations for the years presented
	Cash from operation to give different options to the company like expanding the business, purchase of the assets, dividends to the share holders , if trend shows the positive It means company will earn more profits in the near term. For a company to succeed the positive cash flow requires from operations without that cannot survive
3	largest items included in investing activities
	receipts side
	Sale of equipment / assets
	receipt of loan principle
	sale of investments in securities
	payment side
	Purchase of new assets
	making loan to other parties
	purchase of investments in securities

ekkarill92 answered 5 months ago

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