5. Discuss the firm's cash-to-cash (operating) cycle for 2018 & 2017. Be sure to include the values for the various turnover ratios related to short-term solvency (i.e., Accounts Receivable, Inventory, and Accounts Payable) as well as the Days Outstanding (Held) for each turnover ratio. Then determine the amount of external financing required to support working capital needs based on your answers to the aforementioned ratios. 12 Months Ended Oct. 01. 2017 Sep 30, 2018 Oct. 02, 2016 $ 4,518,000,000 $ 2,884,900,000 $ 2,818,900,000 1,305,900,000 714,900,000 (242,800,000) 226,800,000 499,200,000 (1,376,400,000) 250,300,000 37,600,000 (89,000,000) 1,067,100,000 95,100,000 (310,200,000) 186,600,000 93,500,000 0 176,000,000 87,200,000 (68,900,000) 1,030,100,000 265,700,000 (250,200,000) 223,300,000 6,100,000 0 218,100,000 O (45,100,000) Consolidated Statements of Cash Flows - USD (S) OPERATING ACTIVITIES: Net earnings including noncontrolling interests Adjustments to reconcile net earnings to net cash provided by operating activities: 5 Depreciation and amortization Deferred income taxe, net Income (Loss) from Equity Method investments 9 Distributions received from equity method investees no Deconsolidation, Gain (Loss), Amount: 11 Gain resulting from acquisition of joint venture 12 Stock based compensation u Goodwill, impairment Loss 14 Other 15 Cash provided/fused) by changes in operating assets and liabilities: 16 Accounts receivable 17 Inventories 18 Accounts payable 19 Stored value card ability 20. Other operating assets and liabilities 21 Net Cash Provided by (Used in) Operating Activities 22 INVESTING ACTIVITIES: 23 Purchases of investments 24 Proceeds from Sale and Maturity of Debt Securities, Available for sale 25 Sales of investments 26. Maturities and calls of investments 27 Acquisitions, net of cash acquired 28 Additions to property, plant and equipment 29 Net proceeds from sale of equity in joint ventures and certain retail operations 30 Other 31 Net cash used by investing activities 32 FINANCING ACTIVITIES 131,000,000 (41,200,000) 391,600,000 7,109,400,000 (677,100,000) 11,937,800,000 196,800,000) 14,000,000 46,400,000 130,800,000 (4,700,000) 4,251,800,000 (55,600,000) (67,500,000) 46,900,000 180,400,000 248,800,000 4,697,900,000 (191,900,000) 459,000,000 459,000,000 45,300,000 (1,311,300,000) (1.976,400,000) 608,200,000 5,600,000 12,361,500,000) (674,400,000) 1,054,500,000 999,700,000 149,600,000 0 (1,519,400,000) 85,000,000 54,300,000 (850,000,000) (1,585,700,000) 680,700,000 680,700,000 27,900,000 0 (1.440,300,000) 69,600,000 24,900,000 (2,222,900,000) 362,500,000 (850,000,000) (2,222,900,000) 32 FINANCING ACTIVITIES: 33 Proceeds from issuance of long-term debt 34 Repayments of long-term debt 35 Proceeds from issuance of common stock 36 Cash dividends paid 37 Repurchase of common stock 38. Minimum tax withholdings on share based awards 39 Other 40 Net cash used by financing activities 41 Elfect of exchange rate changes on cash and cash equivalents 42 Net increase/decrease) in cash and cash equivalents 3 CASH AND CASH EQUIVALENTS: 14 Beginning of period 45 End of period 46 Cash paid during the period for: 47 Interest, net of capitalized interest 48 Income taxes, net of refunds 49 50 5,584,100,000 0 153,900,000 (1,743,400,000) 17,133,500,000) (62,700,000) (41,200,000) (3,242,800,000) (39,500,000) 6,294,000,000 750,200,000 (400,000,000) 150,800,000 (1,450,400,000) (2,042,500,000) (82,800,000) (4,400,000) (3,079,100,000) 10,800,000 333,500,000 1,254,500,000 0 160,700,000 (1,178,000,000) (1.995,600,000) (106,000,000) (8,400,000) (1,872,800,000) (3,500,000) 598,700,000 2,462,300,000 8,756,300,000 2,128,800,000 2,462,300,000 1,530,100,000 2,128,800,000 137,100,000 $ 1,176,900,000 96,600,000 $1,389,100,000 74,700,000 $878,700,000 Consolidated Statements of Cash Flows - USD ($) 12 Months Ended Oct. 01, 2017 Sep. 30, 2018 Oct. 02, 2016 $ 4,518,000,000 $ 2,884,900,000 $ 2,818,900,000 1,305,900,000 714,900,000 (242,800,000) 226,800,000 499,200,000 (1,376,400,000) 250,300,000 37,600,000 (89,000,000) 1,067,100,000 95,100,000 (310,200,000) 186,600,000 93,500,000 0 176,000,000 87,200,000 (68,900,000) 1,030,100,000 265,700,000 (250,200,000) 223,300,000 6,100,000 0 218,100,000 0 (45,100,000) OPERATING ACTIVITIES: Net earnings including noncontrolling interests Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization Deferred Income taxes, net Income (Loss) from Equity Method Investments Distributions received from equity method investees Deconsolidation, Gain (Loss), Amount Gain resulting from acquisition of joint venture Stock-based compensation Goodwill, Impairment Loss Other Cash provided/used) by changes in operating assets and liabilities: Accounts receivable Inventories Accounts payable Stored value card liability Other operating assets and liabilities Net Cash Provided by (Used in) Operating Activities INVESTING ACTIVITIES: Purchases of investments Proceeds from Sale and Maturity of Debt Securities, Available-for-sale Sales of investments Maturities and calls of investments Acquisitions, net of cash acquired Additions to property, plant and equipment Net proceeds from sale of equity in joint ventures and certain retail operations Other Net cash used by investing activities 131,000,000 (41,200,000) 391,600,000 7,109,400,000 (677,100,000) 11,937,800,000 (96,800,000) 14,000,000 46,400,000 130,800,000 (4,700,000) 4,251,800,000 (55,600,000) (67,500,000) 46,900,000 180,400,000 248,800,000 4,697,900,000 (191,900,000) 459,000,000 459,000,000 45,300,000 (1,311,300,000) (1,976,400,000) 608,200,000 5,600,000 (2,361,500,000) (674,400,000) 1,054,500,000 999,700,000 149,600,000 0 (1,519,400,000) 85,400,000 54,300,000 (850,000,000) (1,585,700,000) 680,700,000 680,700,000 27,900,000 0 (1,440,300,000) 69,600,000 24,900,000 (2,222,900,000) FINANCING ACTIVITIES: Proceeds from issuance of long-term debt Repayments of long-term debt Proceeds from issuance of common stock Cash dividends paid Repurchase of common stock Minimum tax withholdings on share-based awards Other Net cash used by financing activities Effect of exchange rate changes on cash and cash equivalents Net increase/(decrease) in cash and cash equivalents CASH AND CASH EQUIVALENTS: Beginning of period End of period Cash paid during the period for: Interest, net of capitalized interest Income taxes, net of refunds 5,584,100,000 0 153,900,000 (1,743,400,000) (7.133,500,000) (62,700,000) (41,200,000) (3,242,800,000) (39,500,000) 6,294,000,000 750,200,000 (400,000,000) 150,800,000 (1,450,400,000) (2,042,500,000) (82,800,000) (4,400,000) (3,079,100,000) 10,800,000 333,500,000 1,254,500,000 0 160,700,000 (1,178,000,000) (1,995,600,000) (106,000,000) (8,400,000) (1,872,800,000) (3,500,000) 598,700,000 2,462,300,000 8,756,300,000 2,128,800,000 2,462,300,000 1,530,100,000 2,128,800,000 137,100,000 $ 1,176,900,000 96,600,000 $ 1,389,100,000 74,700,000 $ 878,700,000 5. Discuss the firm's cash-to-cash (operating) cycle for 2018 & 2017. Be sure to include the values for the various turnover ratios related to short-term solvency (i.e., Accounts Receivable, Inventory, and Accounts Payable) as well as the Days Outstanding (Held) for each turnover ratio. Then determine the amount of external financing required to support working capital needs based on your answers to the aforementioned ratios. 12 Months Ended Oct. 01. 2017 Sep 30, 2018 Oct. 02, 2016 $ 4,518,000,000 $ 2,884,900,000 $ 2,818,900,000 1,305,900,000 714,900,000 (242,800,000) 226,800,000 499,200,000 (1,376,400,000) 250,300,000 37,600,000 (89,000,000) 1,067,100,000 95,100,000 (310,200,000) 186,600,000 93,500,000 0 176,000,000 87,200,000 (68,900,000) 1,030,100,000 265,700,000 (250,200,000) 223,300,000 6,100,000 0 218,100,000 O (45,100,000) Consolidated Statements of Cash Flows - USD (S) OPERATING ACTIVITIES: Net earnings including noncontrolling interests Adjustments to reconcile net earnings to net cash provided by operating activities: 5 Depreciation and amortization Deferred income taxe, net Income (Loss) from Equity Method investments 9 Distributions received from equity method investees no Deconsolidation, Gain (Loss), Amount: 11 Gain resulting from acquisition of joint venture 12 Stock based compensation u Goodwill, impairment Loss 14 Other 15 Cash provided/fused) by changes in operating assets and liabilities: 16 Accounts receivable 17 Inventories 18 Accounts payable 19 Stored value card ability 20. Other operating assets and liabilities 21 Net Cash Provided by (Used in) Operating Activities 22 INVESTING ACTIVITIES: 23 Purchases of investments 24 Proceeds from Sale and Maturity of Debt Securities, Available for sale 25 Sales of investments 26. Maturities and calls of investments 27 Acquisitions, net of cash acquired 28 Additions to property, plant and equipment 29 Net proceeds from sale of equity in joint ventures and certain retail operations 30 Other 31 Net cash used by investing activities 32 FINANCING ACTIVITIES 131,000,000 (41,200,000) 391,600,000 7,109,400,000 (677,100,000) 11,937,800,000 196,800,000) 14,000,000 46,400,000 130,800,000 (4,700,000) 4,251,800,000 (55,600,000) (67,500,000) 46,900,000 180,400,000 248,800,000 4,697,900,000 (191,900,000) 459,000,000 459,000,000 45,300,000 (1,311,300,000) (1.976,400,000) 608,200,000 5,600,000 12,361,500,000) (674,400,000) 1,054,500,000 999,700,000 149,600,000 0 (1,519,400,000) 85,000,000 54,300,000 (850,000,000) (1,585,700,000) 680,700,000 680,700,000 27,900,000 0 (1.440,300,000) 69,600,000 24,900,000 (2,222,900,000) 362,500,000 (850,000,000) (2,222,900,000) 32 FINANCING ACTIVITIES: 33 Proceeds from issuance of long-term debt 34 Repayments of long-term debt 35 Proceeds from issuance of common stock 36 Cash dividends paid 37 Repurchase of common stock 38. Minimum tax withholdings on share based awards 39 Other 40 Net cash used by financing activities 41 Elfect of exchange rate changes on cash and cash equivalents 42 Net increase/decrease) in cash and cash equivalents 3 CASH AND CASH EQUIVALENTS: 14 Beginning of period 45 End of period 46 Cash paid during the period for: 47 Interest, net of capitalized interest 48 Income taxes, net of refunds 49 50 5,584,100,000 0 153,900,000 (1,743,400,000) 17,133,500,000) (62,700,000) (41,200,000) (3,242,800,000) (39,500,000) 6,294,000,000 750,200,000 (400,000,000) 150,800,000 (1,450,400,000) (2,042,500,000) (82,800,000) (4,400,000) (3,079,100,000) 10,800,000 333,500,000 1,254,500,000 0 160,700,000 (1,178,000,000) (1.995,600,000) (106,000,000) (8,400,000) (1,872,800,000) (3,500,000) 598,700,000 2,462,300,000 8,756,300,000 2,128,800,000 2,462,300,000 1,530,100,000 2,128,800,000 137,100,000 $ 1,176,900,000 96,600,000 $1,389,100,000 74,700,000 $878,700,000 Consolidated Statements of Cash Flows - USD ($) 12 Months Ended Oct. 01, 2017 Sep. 30, 2018 Oct. 02, 2016 $ 4,518,000,000 $ 2,884,900,000 $ 2,818,900,000 1,305,900,000 714,900,000 (242,800,000) 226,800,000 499,200,000 (1,376,400,000) 250,300,000 37,600,000 (89,000,000) 1,067,100,000 95,100,000 (310,200,000) 186,600,000 93,500,000 0 176,000,000 87,200,000 (68,900,000) 1,030,100,000 265,700,000 (250,200,000) 223,300,000 6,100,000 0 218,100,000 0 (45,100,000) OPERATING ACTIVITIES: Net earnings including noncontrolling interests Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization Deferred Income taxes, net Income (Loss) from Equity Method Investments Distributions received from equity method investees Deconsolidation, Gain (Loss), Amount Gain resulting from acquisition of joint venture Stock-based compensation Goodwill, Impairment Loss Other Cash provided/used) by changes in operating assets and liabilities: Accounts receivable Inventories Accounts payable Stored value card liability Other operating assets and liabilities Net Cash Provided by (Used in) Operating Activities INVESTING ACTIVITIES: Purchases of investments Proceeds from Sale and Maturity of Debt Securities, Available-for-sale Sales of investments Maturities and calls of investments Acquisitions, net of cash acquired Additions to property, plant and equipment Net proceeds from sale of equity in joint ventures and certain retail operations Other Net cash used by investing activities 131,000,000 (41,200,000) 391,600,000 7,109,400,000 (677,100,000) 11,937,800,000 (96,800,000) 14,000,000 46,400,000 130,800,000 (4,700,000) 4,251,800,000 (55,600,000) (67,500,000) 46,900,000 180,400,000 248,800,000 4,697,900,000 (191,900,000) 459,000,000 459,000,000 45,300,000 (1,311,300,000) (1,976,400,000) 608,200,000 5,600,000 (2,361,500,000) (674,400,000) 1,054,500,000 999,700,000 149,600,000 0 (1,519,400,000) 85,400,000 54,300,000 (850,000,000) (1,585,700,000) 680,700,000 680,700,000 27,900,000 0 (1,440,300,000) 69,600,000 24,900,000 (2,222,900,000) FINANCING ACTIVITIES: Proceeds from issuance of long-term debt Repayments of long-term debt Proceeds from issuance of common stock Cash dividends paid Repurchase of common stock Minimum tax withholdings on share-based awards Other Net cash used by financing activities Effect of exchange rate changes on cash and cash equivalents Net increase/(decrease) in cash and cash equivalents CASH AND CASH EQUIVALENTS: Beginning of period End of period Cash paid during the period for: Interest, net of capitalized interest Income taxes, net of refunds 5,584,100,000 0 153,900,000 (1,743,400,000) (7.133,500,000) (62,700,000) (41,200,000) (3,242,800,000) (39,500,000) 6,294,000,000 750,200,000 (400,000,000) 150,800,000 (1,450,400,000) (2,042,500,000) (82,800,000) (4,400,000) (3,079,100,000) 10,800,000 333,500,000 1,254,500,000 0 160,700,000 (1,178,000,000) (1,995,600,000) (106,000,000) (8,400,000) (1,872,800,000) (3,500,000) 598,700,000 2,462,300,000 8,756,300,000 2,128,800,000 2,462,300,000 1,530,100,000 2,128,800,000 137,100,000 $ 1,176,900,000 96,600,000 $ 1,389,100,000 74,700,000 $ 878,700,000
