FINANCIAL ANALYSIS

The following information is available for the Felix Company. Using the indirect method, what is cash flow from operating activities for Felix Company? *

A. $240

B. $70

C. $320

D. $250

E. None of the above.

Consider the following statement of cash flows for Star Pharmaceuticals. Using the summary of the analysis approach, what is the total cash inflows for 2014?

A. $370

B. $970

C. $1,340

D. $1,550

E. None of the above

$ 300 $ 20 $ 35 $ 25 Net income Depreciation expense Gain on sale of assets Increase in inventories Decrease in plant and equip. Increase in deferred tax asset Decrease in long-term debt Decrease in accounts payable $ 40 $ 5 $ 50 $ 15 (in millions) 2015 2014 Cash flows from operating activities (CFO): Net income $5,800 $3,300 Adjustments to reconcile net income to CFO: Depreciation and amortization 550 360 Deferred income taxes 10 (580) Stock-based compensation 590 170 (Increase) decrease in operating assets and liabilities: Accounts receivable (490) (380) Inventories (6,900) (1,960) Other current assets 410 (480) Accounts payable 700 690 Income taxes payable 250 140 Accrued liabilities 170 (290) Net CFO 1,090 970 Cash flows from investing activities: Purchases of property and equipment (740) (750) Acquisitions 0 (350) Net cash used by investing activities (740) (1.100) Cash flows from financing activities: Proceeds from common stock sales 2,000 580 Repayment of short-term line of credit 0 (140) Repayment of long-term debt (70) (70) Net cash provided by financing activities 1.930 Net increase in cash 2,280 240 Beginning cash balance 980 740 Ending cash balance $3.260 $980 370