Identify where the primary sources of cash flow are coming in and where the principal uses of cash flow are going out in the firm’s Statement of Cash Flow. • Evaluate the overall cash flow for...

An Introduction:
The statement of cash flow is the most important financial statement which describes the amount of the cash and cash equivalents of the entity. This statement determines the position of the entity in maintaining its cash position and it also determines the ability of the entity to pay its debt obligations and meet its operating expenses. It helps the investors to understand the financial position of the entity and on the other hand a creditor uses cash flow statement for determining the liquidity of the entity (Kimball, Tara).
The main component of the cash flow statement are divided into three segments such as cash from operating activities, cash from investing activities and cash from financing activities. The cash from operating activities consists of movement of cash from the operations or business of the entity such as cash generated from the products or services of the entity. On the other hand the cash from investing activities includes source and uses of the cash from the investment of the entity such as purchase and sale of the asset or loan made to vendors or received from customers. Further the cash from financing activities includes the source of cash from investors or banks and the cash paid to the shareholders (M.Noor, et. al 2012).
Analysis of the cash flow statement of Neiman Marcus:
Neiman Marcus Group is a company which owns an apparel store which sells everything from shoes to shirts. The entity operates as a departmental...