The following cash flows were reported by Techno Inc. in 2024 and 2023. (a) Explain the difference
Question:
The following cash flows were reported by Techno Inc. in 2024 and 2023.
(a) Explain the difference between net income and cash flow from operating activities for Techno in 2024.
(b) Analyze Techno Inc.’s cash flows for 2024 and 2023.
Transcribed Image Text:
(in Thousands) 2024 2023 Net income $316,354 $ 242,329 Noncash charges (credits) to income Depreciation and amortization 68,156 62,591 Deferred taxes 15,394 22,814 $399,904 $327,734 Cash Provided (Used) by Operating Assets and Liabilities: Receivables (288,174) (49,704) Inventories (159,419) (145,554) Other current assets (1,470) 3,832 Accounts payable, accrued liabilities 73,684 41,079 Total Cash Provided by Operations $ 24,525 $177,387 Investment activities Additions to plant and equipment (94,176) (93,136) Other investment activities 14,408 (34,771) Net investment activities ($ 79,768) ($127,907) Financing activities Purchases of treasury stock (45,854) (39,267) Dividends paid (49,290) (22,523) Net changes in short-term borrowings 125,248 45,067 Additions to long-term borrowings 135,249 4,610 Repayments of long-term borrowings (250,564) Net financing activities $165,353 ($262,677) Increase (decrease) in cash $110,110 ($213,197) Beginning cash balance 78,114 291,311 Ending cash balance $188,224 $ 78,114
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a Cash provided by operations in 2024 is considerably less than net income The major reason is the 2...View the full answer
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Related Book For
Understanding Financial Statements
ISBN: 9780138114404
12th Edition
Authors: Lyn Fraser, Aileen Ormiston
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