Through analyzing the statement of cash flows for the three different companies, there were obvious differences in size of the corporation and what they spent there cash on. The year that had to be analyzed was 2001, it was the most recent year that all the companies had in their annual reports. One of the most outstanding differences was the beginning net income for the companies, Deere & Company started out with a negative net income of $64,000,000. Gehl had a small amount of net income of $2,305,000 and the largest net income went to Kubota who had $78,605,248. In the operating activities section of the statement of cash flows the other two main figures were the accounts receivable and the accounts payable.
Another way to determine the size and the future of a company is through the investing activities section of the statement of cash flow. If a company is continuing to grow it will have to purchase property and equipment. The smaller company Gehl purchased $4,135,000 equipment in 2001, and in the prior two years they spent around $20,000,000 which could mean the growth of the company may be slowing down. Deere& Company purchased $491,000,000 of property and equipment in 2001. These numbers put the power of the companies into perspective. Deere & Company's net cash used for investing activities has continued to grow from $651,800,000 in 1999 to $2,364,900,000 in 2001. Kubota has had a basically balanced amount of cashed used for investing activities throughout the past three years, hovering rate around $200,500,000. Gehl Company has shown a significant decline in net cash used for investing activities from $15,824,000 in 2000 to $3,582,000 in 2001. Investing activities are essential to a company and its investors, the amount invested usually shows the future of the company.
In the financing activities section of the statement of cash flow the investments that stand out are usually the proceeds and payments of loans and the purchase or sale of stock.
