It 286 Week 4 Assignment Financial Polynomials

2The Financial Accounting Standards Board (FASB) guidance in Statement No. 117 requires all not-for-profit organizations to have the following financial statements: The Statementof Financial Position (Balance Sheet), the Statement of Activities (Income Statement and Profit & Loss Statement), the Statement of Cash Flows (for Accrual basis entities) and Statement of Functional Expenses (for voluntary health and welfare organizations). (Nonprofit Accounting Basic$) “March of Dimes is a United States not-for-profit organization that works to improve thehealth of mothers and babies by preventing birth defects, premature births and infant mortality.” (Wikipedia) With the March of Dimes improving the health of mothers and babies they are required to submit all four of the financial statements required by FASB Statement No. 117. After reviewing the March of Dimes’ annual reports for 2016, their financial statements conform to the guidelines of the FASB Statement No. 117.

CASH FLOW STATEMENT 2 The statement of cash flows is one of the three key statements used to report and understand the performance of a business. “The statement of cash flows reports nothing less than the cash flow generated by the business over a period of time, and the sources and uses of cash” (The Statement of Cash Flows, 2012). Furthermore, the cash flow statement is “divided into three sections, each of which can be a source or use of cash and, thereby, materially impact overall cash flow” (Statement of Cash Flows, 2012). It is the intent of this paper to explain the purpose of a cash flow statement and how it reflects a firm’s financial status while also analyzing Ford Motor Company’s cash flow from its 2012 Annual Report. Statements of cash flows are vital because they outline of the sources and uses of cash and cash equivalents for an organization and it complements profit/loss of that company because they are period based, not accruals based; it measures liquidity versus profitability; and cash flow information is highly reliable (University of New England, 2015). The three parts of a cash flows


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