Accounting Research: Cash Flow Statement Analysis of Boeing, Starbucks, Genentech and Ford Motor

This report analyzes the cash flow statements of Boeing, Starbucks, Genentech and Ford Motor, highlighting similarities and differences in their presentation of cash flow. The report concludes that Ford Motor is still struggling in uses of cash in the business activities in comparison to the other three.

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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Presentation of Cash Flow.....................................................................................................2
Similarity and Differences in Cash Flow Statement..............................................................4
Conclusion..................................................................................................................................4
Reference....................................................................................................................................5

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Introduction
The statement of cash flow is the financial statement, which helps in summarizing
amount of the cash as well as equivalents that is entering as well as leaving the company.
This measures the way company manages their position of cash as well as generates cash for
paying cash for paying their obligation of debt and funding their expenses of operations
(Uwonda & Okello, 2015). Hence, this report includes the discussion on the similarities as
well as differences in presentation of cash flow of Boeing, Starbucks, Genentech and Ford
Motor.
Discussion
Presentation of Cash Flow
Boeing
Boeing is the multinational company of Australia that manufacturers, designs and
sells missiles, airplanes, satellites, rockets, rotorcraft as well as telecommunications
equipment worldwide. Moreover, it also provides products as well as leasing support
services. The cash flow from operating activities from 2017-2018 was increased to 1,976
billion, from 2016-2017 was increased to 2,850 billion and from 2015-2016 was increased to
1,136 billion. Further, cash flow investing activities from 2017-2018 was increased to (2,563
billion), from 2016-2017 was reduced to (1,320 billion) and from 2015-2016 was increased to
(1,534 billion). Lastly, cash flow from financing activities from 2017-2018 was increased to
(372 billion), from 2016-2017 was increased to (1,763 billion) and from 2015-2016 was
increased to (1,667 billion) (annualreports.com, 2019).
Starbucks

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Starbucks Corporation is the coffee company as well as coffeehouse chain of
America, which was founded in Seattle in the year 1971. The trend of years shows that the
cash flow from operating activities is having increasing trend that is from 2017-2018- cash
increased by 7.7 billion, from 2016-2017- cash reduced by (0.41 billion)and lastly, from
2015-2016- cash increased by 0.83 billion. Moreover, cash from investing activities is
having almost constant trend that is from 2017-2018- cash increased by (1.51 billion), from
2016-2017- cash reduced by (1.37 billion) and lastly, from 2015-2016- cash increased by
(0.34 billion). Lastly, cash flow from financing activities indicates that from 2017-2018- cash
increased by (0.24 billion), from 2016-2017- cash increased by (0.15) billion and from 2015-
2016- cash reduced by (0.15billion) (Starbucks Corporation - Financial Data - Annual
Reports, 2019).
Genentech
Genentech Inc. is the biotechnology company that became subsidiary of Roche in
year 2009. Further, Genentech Research and the Early Development operate as the
independent center in Roche. Moreover, the cash flow from operating activities from 2017-
2018 has increased to 1,955 billion, from 2016-2017 was increased to 3,023 billion and from
2015-2016 has reduced to (250 billion). Further, cash flow investing activities from 2017-
2018 has increased to (736 billion), from 2016-2017 was increased to (1,946 billion) and
from 2015-2016 was increased to (237 billion). Lastly, cash flow from financing activities
from 2017-2018 has reduced to (424 billion), from 2016-2017 was increased to (1,044
billion) and from 2015-2016 was reduced to (437 billion) (Downloads, 2019).
Ford Motor
Ford Motor is the American multinational automaker, which sells automobiles as well
as commercial values under Ford brand and the most luxury brands under Lincoln brand. The

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cash flow from operating activities from 2017-2018, cash flow reduced to (3.18 billion) and
from 2016-2017 there was (1.69 billion) reduction of cash and in 2015-2016, there was
increase of cash flow to 3.62 billion. Further, cash flow investing activities from 2017-2018,
was reduced to (3.1 billion), from 2016-2017 there was reduction of (5.99 billion) and there
was reduction of (0.81 billion) in 2015-2016.Lastly, cash flow from financing activities
during 2017-2018 was reduced to (3.268 billion), during 2016-2017 it was reduced to (4.07
billion) and in 2015-2016, there was reduction in financing activities by (6.86 billion) (Ford
Motor Company – Financials, 2019).
Similarity and Differences in Cash Flow Statement
The trend of cash flow of all four companies shows that cash flow from operating
activities is on increasing trend and it shows that for all the companies cash flow from
operation flow been increased except Ford Motor. Moreover, the trend of cash flow from
investing activities shows that for all the companies cash flow from the investment is on
increasing trend except Ford Motor. Lastly, the trend of cash flow from financing activities
shows that Boeing and Starbucks is increasing the uses of cash from financing activities but
Genentech and Ford Motor is still reducing the uses of cash from financing activities
(Williams & Dobelman, 2017).
Conclusion
Therefore, this report concludes that cash flow statement is financial statement, which
measures generation of cash or its uses by the company in the given period. It has been
analyzed from the uses of cash by operating, investing and financing activities in Boeing,
Starbucks, Genentech and Ford Motor is that the Ford Motor is still struggling in uses of cash
in the business activities in comparison to the other three.

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Reference
annualreports.com (2019). Retrieved 4 October 2019, from
http://www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_BA_2018.pdf
Downloads. (2019). Retrieved 4 October 2019, from
https://www.roche.com/investors/downloads.htm
Ford Motor Company - Financials. (2019). Retrieved 4 October 2019, from
https://shareholder.ford.com/investors/financials/annual-reports/default.aspx
Starbucks Corporation - Financial Data - Annual Reports. (2019). Retrieved 4 October 2019,
from https://investor.starbucks.com/financial-data/annual-reports/default.aspx
Uwonda, G., & Okello, N. (2015). Cash flow management and sustainability of small
medium enterprises (SMEs) in Northern Uganda. International Journal of Social
Science and Economics Invention, 1(03), 153-to.
Williams, E. E., & Dobelman, J. A. (2017). Financial statement analysis. World Scientific
Book Chapters, 109-169.