Read Fields text, Chapters 1-3. Text Book – Finance and Accounting for Nonfinancial Managers Third Edition by Edward Fields Take a closer look at the Metropolitan Manufacturing Company financial statements: Comparative Balance Sheet Ex. 1-1 located on p. 24. The ‘See line’ on the far right column refers to the line number on p. 71. Statements of Profit and Loss (Income statements) Ex. 2-1 on p. 61 Statement of Cash Flows Ex 3-2 on p. 75 Looking at the Balance Sheet, what do notice? What, if anything stands out to you? Why? Looking at the Income Statement, same thing, what do you notice? What, if anything stands out to you? Why? Now looking at the Statement of Cash Flows, what do you notice? Key in on the three subtotals. Where is the cash coming from and going to? Understanding that cash from operations is the driver, investments is building more productive capacity and financing is moving cash through time to facilitate investments or fill momentary shortfalls in cash from operations, does the relationship look favorable or unfavorable. What questions would you ask of management to help you decide? Lastly, look at the components of Cash Flow Provided by Operations. What, if anything stands out there? Writer – This is just a discussion post, no need for references.