200 LHATU Case 4.3 Avnet Inc. of electronic component and embedded subsystem Avnet creates a vital link in ot is one of the world's largest value-added distributors of ela enterprise computer and storage products, IT services and en vital link in the technology supply chain that connecte electronic component and computer product manufacturer evelopers with a global customer base of original equipment ma ronic manufacturing services providers, original design manufacta product manual manufacturers nufacturers, and value vects the world's wers and software added resellers Avnet, Inc. and Subsidiaries Consolidated Statements of Cash Flows Years Ended June 29, 2013 June 30, 2012 July 2, 2011 (Thousands) $ 450,073 5 567,019 $ 669,069 81,389 15,966 Cash flows from operating activities: Net income Non-cash and other reconciling items: Depreciation and amortization Deferred income taxes (Note 9) Stock-based compensation (Note 12) Gain on bargain purchase and other (Note 2) Other, net (Note 15) Changes in (net of effects from businesses acquired): Receivables Inventories Accounts payable Accrued expenses and other, net Net cash flows provided by operating activities 120,676 (10,019) 43,677 (31,011) 75,327 101,336 11,782 35,737 (2,918) 66,263 28,931 (22,715) 56,846 (421,457) (94,203) 225,667 (78,834) 72,267 133,178 (319,094) (136,852) (321,939) (5,156) 165,185 26,804 696,197 528,718 278,079 Cash flows from financing activities: (Repayments of borrowings under accounts receivable securitization program, net (Note 3) Issuance of notes in a public offering, net of issuance costs (Note 7) Repayment of notes (Note 7) (Repayments of) proceeds from bank debt, net (Note 7) (310,000) 510,000 160,000 349,258 (109,600) (179,861) "Extracted from 10-K filings for Avnet Inc., 2013. Obtained from U.S. Securities and Exchange Commission. www.sec.gov. 86,823 1,644 D IE U Cush Flows 201 7,238 (1,080) (207,192) 4,792 (1,007) (318,333) 5,590 3,930 (344,083) 283,073 63,212 (97,379) (128,652) (148,707) 3,018 1,046 10,621 (Repayments of) proceeds from other debt, net (Note 7) Repurchases of common stock (Note 4) Other, net (Note 12) Net cash flows (used for) provided by financing activities Cash flows from investing activities: Purchases of property, plant and equipment Cash proceeds from sales of property, plant, and equipment Acquisitions of operations and investments, net of cash acquired (Note 2) Cash proceeds from divestiture activities (Note 2) Net cash flows used for investing activities Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents: - increase (decrease) - at beginning of year - at end of year (262,306) (313,218) (690,997) 3,613 19,108 (353,054) (440,824) (809,975) 3,419 (39,437) 51,916 2,479 1,006,864 $ 1,009,343 331,530 675,334 $1,006,864 (416,768) 1,092,102 675,334 $ Additional cash flow information (Note 15) See notes to consolidated financial statements. Required: (a) Using the Consolidated Statements of Cash Flows for Avnet, prepare a sum- mary analysis for all three years. (b) Write an analysis and interpretation of the cash flows for Avnet for all three years. Be sure to analyze the cash flows from operating activities, as well as the overall cash inflows and outflows for the firm. (c) Evaluate the creditworthiness of Avnet based on only the cash flow statements. (d) What information from the balance sheet would be useful to a creditor in determining whether to loan Avnet money