1. Net income (from the income statement) is a measure of operating activities but the income statement reports net income based on financial accounting, not based on cash flows. Thus, net income is adjusted from a financial accounting measure back to a cash flow by adding back expenses that do not affect cash (such as depreciation), subtracting non cash gains on sale of assets, adding back non cash losses from sales of assets, and adjusting for changes in current assets and current liabilities (information from the balance sheet). 2. Cash flows from the sale and purchase of long term assets are reported in the investing activities section. 3. Cash flows from changes in long term liabilities and owners equity are reported in the financing activities section.
Do you see net income from the income statement on your statement of cash flows? Can you recalculate the amounts reflected as changes in current assets and current liabilities from your balance sheet(s)?
Consolidated Statements of Cash Flows Fiscal 2019 (52 Weeks) Fiscal 2018 (53 Weeks) Fiscal 2017 (52 Weeks) $ 356,062 $ 333,684 $ 259,545 188,808 10,209 (26,199) 183,077 1,889 (25,372) 187,759 1,755 (7.714) 215,810 (2,557) 64,163 (26) 23,639 59,802 (579) 63,381 42,988 (135) (5,034) 24,219 (15,329) (70,331) (3,189) (11,051) 13,259 (640) (54,691) 62,377 45,976 38,899 24,929 149 (80,235) (1,019) (15,475) 2,549 9,597 (3,002) 28,226 (226,257) 735 607,294 (35,208) 585,986 33,541 499,704 In thousands Cash flows from operating activities: Net carnings Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: Depreciation and amortization Loss on disposal/impairment of assets Amortization of deferred lease incentives Non-cash lease expense Deferred income taxes Stock-based compensation expense Other Changes in: Accounts receivable Merchandise inventories Prepaid catalog expenses Prepaid expenses and other assets Accounts payable Accrued expenses and other liabilities Gift card and other deferred revenue Deferred rent and lease incentives Operating lease liabilities Income taxes payable Net cash provided by operating activities Cash flows from investing activities: Purchases of property and equipment Acquisition of Outward, Inc., net of cash received Other Net cash used in investing activities Cash flows from financing activities: Payment of dividends Repurchases of common stock Borrowings under revolving line of credit Repayments of borrowings under revolving line of credit Tax withholdings related to stock-based awards Proceeds from issuance of long-term debt Debt issuance costs Other Net cash used in financing activities Effect of exchange rates on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Supplemental disclosure of cash flow information: Cash paid during the year for interest Cash paid during the year for income taxes, net of refunds Non-cash investing activities: Purchases of property and equipment not yet paid for at end of year (186,276) (190,102) (189,712) (80,528) 480 (269,760) 728 (185,548) 2,203 (187,899) (150,640) (148,834) 100,000 (100,000) (27,752 (140,325) (295,304) 60,000 (60,000) (14,437) (135,010) (196,179) 170,000 (170,000) (18,130) 300,000 (1,191) (1,197) (51,707) (1,814) 176,423 213,713 $ 390,136 (327,226) (1,312 93,208 338,954 $ 432,162 (450,066) 797 (51,182) 390,136 $ 338,954 $ 12,682 $ 113,344 $ 11,424 $ 107,951 S $ 2,915 99,062 2,386 $ 2,773 $ 1,257 Consolidated Balance Sheets Feb. 2, 2020 Feb. 3, 2019 432,162 111,737 1,100,544 90,426 20,766 1,755,635 929,038 1,166,383 47,977 85,343 69,666 4,054,042 338,954 107,102 1,124,992 101,356 21,939 1,694,343 929,635 44,055 85,382 59,429 2,812,844 $ $ 526,702 163,559 290,445 21,461 In thousands, except per share amounts ASSETS Current assets Cash and cash equivalents Accounts receivable, net Merchandise inventories, net Prepaid expenses Other current assets Total current assets Property and equipment, net Operating lease right-of-use assets Deferred income taxes, net Goodwill Other long-term assets, net Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable Accrued expenses Gift card and other deferred revenue Income taxes payable Current debt Operating lease liabilities Other current liabilities Total current liabilities Deferred rent and lease incentives Long-term debt Long-term operating lease liabilities Other long-term liabilities Total liabilities Commitments and contingencies - See Note I Stockholders' equity Preferred stock: $.01 par value; 7,500 shares authorized: none issued Common stock: $.01 par value: 253,125 shares authorized; 77,137 and 78,813 shares issued and outstanding at February 2, 2020 and February 3, 2019, respectively Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock - at cost: 14 and 2 shares as of February 2, 2020 and February 3, 2019, respectively Total stockholders' equity Total liabilities and stockholders' equity 521,235 175,003 289,613 22,501 299,818 227,923 73,462 1,609,555 27,659 72,645 1,074,812 201,374 299,620 1,094,579 86,389 2,818,182 81,324 1,657,130 772 789 605,822 644,794 (14,587 581,900 584,333 (11,073 (941) (235 1,155,714 1,235,860 $ 4,054,042 $ 2,812,844
