Reference no: EM132463178

Question 1: Analyse using the Cash Flow Statements of two of the companies listed and identify which stage of the cash flow lifecycle are the two companies are within (Startup/Growth/Inception or Maturity or Decline phase). Provide a justification for the classification and support by including reference to the relevant figures within the Cash Flow Statement to support your case.

Jb HI-FI: Cash Flow

• Operating activities 301.6
• Investing activities (59.1)
• Financing activities (195.4)

Harvey Norman

• Operating Activities 372.85
• Investing activities (66.20)
• Financing activities (246.29)

You have found these figures in their annual reports (2019), this leads me into thinking that both JB HI-FI and Harvey Norman are in the stability/maturity phase, this is because it has High operative activities, low-neutral investing activities and a negative financing activities. My understanding is that both companies are limiting their investment proven by the low numbers, and both companies are reaching a point where they are setting financial obligations and can start reaping the benefits of earlier investments. (Feedback on this is appreciated)

Question 2: Are there any accounting concepts that i should reference when answering this question?