Review the following real-world Hewlett Packard Statement of Cash flows and address the two questions below: Required:

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Review the following real-world Hewlett Packard Statement of Cash flows and address the two questions below:
In millions In millions Cash flow from operating activities For the year ended For the year ended 2011 2012 S(12,650) Ne
Deferred taxes on earnings (711) 166 Excess tax benefit from stock-based competition (12) (163) Other, net 265 (46) Acco

Required:
1) Please calculate the percentage increase or decrease in cash for the total line of the operating, investing, and financing sections bolded above and explain the major reasons for the increase or decrease for each of these sections.
2) Please calculate the free cash flow for 2012 and explain the meaning of this ratio.

Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...
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Intermediate Accounting

ISBN: 978-0077400163

6th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

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