Qs) Andrew Potter is comparing the cash- flow- generating ability of Microsoft with that of Apple Inc. He collects information from the companies’ annual reports and prepares the following table. Cash flow from Operating Activities as a Percentage of Total Net Revenue Microsoft Apple Inc.2017(%)2016(%)2015(%)43.939.131.727.730.534.8 Cash flow from Operating Activities as a Percentage of Average Total AssetsMicrosoft Apple Inc.2017(%)2016(%)2015(%)18.218.117.118.221.531.1What is Potter likely to conclude about the relative cash- flow- generating ability of these two companies?

Cash Flow Statement - A cash flow statement provides all the related information about a company's…

Answered: Qs) Andrew Potter is comparing the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Qs) Andrew Potter is comparing the cash- flow- generating ability of Microsoft with that of Apple Inc. He collects information from the companies’ annual reports and prepares the following table.

	Cash flow from Operating Activities as a Percentage of Total Net Revenue
Microsoft Apple Inc.	2017(%)	2016(%)	2015(%)
43.9	39.1	31.7
27.7	30.5	34.8

	Cash flow from Operating Activities as a Percentage of Average Total Assets
Microsoft Apple Inc.	2017(%)	2016(%)	2015(%)
18.2	18.1	17.1
18.2	21.5	31.1

What is Potter likely to conclude about the relative cash- flow- generating ability of these two companies?

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