Management: Woolworth Group’s Annual Report 2016

To understand the working principles of the cash flows and their significance, it is vital to refer to the managerial discussion and explanation of this financial statement. In the first place, one of the major aspects is increasing the investment of “$45 million into the meat category.” This matter is vehemently reflected in the statement of the cash flow of FY16 and followed by the managerial discussion. For example, $1,465.0 million was used as a long-term investment for the development of the property, stores, and plants.

To understand the working principles of the cash flows and their significance, it is vital to refer to the managerial discussion and explanation of this financial statement. In the first place, one of the major aspects is increasing the investment of “$45 million into the meat category.” This matter is vehemently reflected in the statement of the cash flow of FY16 and followed by the managerial discussion. For example, $1,465.0 million was used as a long-term investment for the development of the property, stores, and plants.

The analysis conducted above clearly displays that the financial strategy and components of the cash flow statement are interdependent. For example, the investment and financing (notes payable) activities are the major sources of cash outflows while being required for business development. This matter, the fluctuations of the revenues, and changes in inventories have a direct impact on the cash acquired from operations. Consequently, the outweigh of cash outflows will signify low liquidity and solvency of the company and the inability to pay dividends, and the financial strategy is necessary since it forms a general pattern regarding the inflows and outflows of cash with respect to the business risks.