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Posted on Jul 03, 2024

for some reason, my indirect vs direct method is not matching.. need assistance to see what I am doing wrong. the cash flow operations should

for some reason, my indirect vs direct method is not matching.. need assistance to see what I am doing wrong. the cash flow operations should be $3,809.8, the cash flow investment -$600.4 and the cash flow financing -$9,279.1 ( this is match with my result) but not the other 2.

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G TJ K L 3,599.2 1 Cash Flows from Operating Activities (Indirect method) 2 Net income 3 Add (deduct) adjustments to cash basis: 4 Add back depreciation 5 Add back amortization of intangibles 6 Add back loss (subtract earnings) of affiliates 7 Add back loss (subtract gain) on sale of fixed assets 8 (Increase) decrease in receivables 9 Increase) decrease in inventories 10 (Increase) decrease in other current assets 11 (Increase) decrease in other non current assets 12 Increase (decrease) accounts payable 13 Increase (decrease) accrued expenses 14 Increase (decrease) deferred revenue 15 Increase (decrease) other current liabilites 16 Add back increase (subtract decrease) in deferred taxes 17 Increase (decrease) other taxes payable 18 Net Cash Flow from Operating Activities 1,213.5 163.8 (298.0) (623.7) (186.1) (128.9) 974.6 (1,698.5) 10.4 1.2 (373.9) 7.8 (60.0) 1,188.9 3.790.3 Cash & equivalents 2 Marketable securities Accounts receivable, net Inventories Other current assets Total current assets Property, plant, & equipment, gross Less: Accumulated depreciation Property, plant, & equipment, net Equity method investments Other long-term investments Goodwill Other intangible assets Other noncurrent assets Total assets 2019 $2,686.6 70.5 879.2 1,529.4 488.2 5,653.9 14,273.5 7,841.8 6,431.7 396.0 220.0 3,490.8 781.8 2.245.4 $19,219.6 F Given 2018 $8,756.3 181.5 693.1 1,400.5 1,462.8 12,494.2 13,197.1 7.268.0 5,929.1 334.7 267.7 3,541.6 1,042.2 546.9 $24,156.4 Sales Less: Cost of goods sold Gross profit Less: Selling, general, & administrative expenses Less: Depreciation & amortization expenses Operating profit (EBIT) Less: Interest expense Plus: Interest income Other nonoperating income (expense) Income/(loss) from equity method investments Less: Impairment of goodwill Gain/(loss) on sale of assets Earnings before tax Less: Income tax expense Net income 2019 $26,508.6 19.020.5 7,488.1 2,195.1 1,377.3 3.915.7 331.0 131.3 (116.1) 298.0 50.8 623.7 4,470.8 871.6 $3,599.2 349.9 0.0 20 Cash Flow from Investing Activities 21 Amortization Expense 22 Other intangible assets 23 Goodwill 24 (Purchase) sale of other long-term investments 25 Net sales (purchases) of marketable securities 26 Purchase of fixed assets 27 Sale of fixed assets 28 Net Cash Flow from Investing Activities (163.8) 260.4 50.8 47.7 111.0 (865.6) 778.4 218.9 calculating Beg of year net fixed assets Less disposal of fixed assets (net BV) Less depreciation expense Purchase of new fixed assets End of year fixed assets $6,431.7 ($154.7) ($1,213.5) $865.6 $5,929.1 Current portion of long-term debt Short-term debt (notes payable) Accounts payable Taxes payable Other accrued expenses Deferred revenue Other current liabilities Total current liabilities Long-term debt Deferred taxes Other long-term liabilities Total liabilities Preferred stock Common stock and additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Less: Treasury stock Total equity Total liabilities and equity 0.0 0.0 1,189.7 1,291.7 1,753.7 1,269.0 664.6 6,168.7 11,167.0 1,370.5 6,744.4 25,450.6 0.0 44.3 13,646.1 (502.1) 19.419.3 (6,231.0) $19,219.6 29 1,179.3 102.8 1,752.5 1,642.9 656.8 5,684.2 9,090.2 1,430.5 6,775.7 22,980.6 0.0 42.4 10,751.5 (330.3) 9.287.8 1,175.8 $24,156.4 Calculating End of year retained earnings Less net income Accumulated other comprehensive income/loss) Less end of year retained earnings Dividends paid 30 $13,646.10 $3,599.20 $171.80 $10,751.50 -$876.40 1,726.9 1.9 0.0 (876.4) (10,131.5) (9,279.1) 31 Cash Flow from Financing Activities 32 Net proceeds from inssuancence (repurchase) of long-term debt 33 Issuance (purchase of capital stock) 34 Net proceeds from inssuancence (repurchase) of notes payable 35 Payment of dividends 36 Treasury stock purchase 37 Net Cash Flow from Financing Activities 38 39 Cash Flows from Operating Activities (Direct Method) 40 Cash from sales 41 Cash for inventory 42 Cash for operations 43 Cash for interest 44 Cash for taxes 45 Cash from nonoperating activities 46 Net Cash Flow from Operations 47 . During the year, the company received cash of $778.4 when it sold fixed assets with a net book value of $154.7, which gave rise to the $623.7 gain that appears on the income statement Total depreciation and amortization expenses of $1,377.3 is made up of depreciation expense of $1,213.5 and amortization expense of $163.8. 25,948.6 (19,139.0) (2.941.3) (331.0) (257.3) (116.1) 3,163.9 Check figures: cash flow from operations = $3,809.8; cash flow from investments = -$600.4, and cash flow from financing = -$9,279.1. G TJ K L 3,599.2 1 Cash Flows from Operating Activities (Indirect method) 2 Net income 3 Add (deduct) adjustments to cash basis: 4 Add back depreciation 5 Add back amortization of intangibles 6 Add back loss (subtract earnings) of affiliates 7 Add back loss (subtract gain) on sale of fixed assets 8 (Increase) decrease in receivables 9 Increase) decrease in inventories 10 (Increase) decrease in other current assets 11 (Increase) decrease in other non current assets 12 Increase (decrease) accounts payable 13 Increase (decrease) accrued expenses 14 Increase (decrease) deferred revenue 15 Increase (decrease) other current liabilites 16 Add back increase (subtract decrease) in deferred taxes 17 Increase (decrease) other taxes payable 18 Net Cash Flow from Operating Activities 1,213.5 163.8 (298.0) (623.7) (186.1) (128.9) 974.6 (1,698.5) 10.4 1.2 (373.9) 7.8 (60.0) 1,188.9 3.790.3 Cash & equivalents 2 Marketable securities Accounts receivable, net Inventories Other current assets Total current assets Property, plant, & equipment, gross Less: Accumulated depreciation Property, plant, & equipment, net Equity method investments Other long-term investments Goodwill Other intangible assets Other noncurrent assets Total assets 2019 $2,686.6 70.5 879.2 1,529.4 488.2 5,653.9 14,273.5 7,841.8 6,431.7 396.0 220.0 3,490.8 781.8 2.245.4 $19,219.6 F Given 2018 $8,756.3 181.5 693.1 1,400.5 1,462.8 12,494.2 13,197.1 7.268.0 5,929.1 334.7 267.7 3,541.6 1,042.2 546.9 $24,156.4 Sales Less: Cost of goods sold Gross profit Less: Selling, general, & administrative expenses Less: Depreciation & amortization expenses Operating profit (EBIT) Less: Interest expense Plus: Interest income Other nonoperating income (expense) Income/(loss) from equity method investments Less: Impairment of goodwill Gain/(loss) on sale of assets Earnings before tax Less: Income tax expense Net income 2019 $26,508.6 19.020.5 7,488.1 2,195.1 1,377.3 3.915.7 331.0 131.3 (116.1) 298.0 50.8 623.7 4,470.8 871.6 $3,599.2 349.9 0.0 20 Cash Flow from Investing Activities 21 Amortization Expense 22 Other intangible assets 23 Goodwill 24 (Purchase) sale of other long-term investments 25 Net sales (purchases) of marketable securities 26 Purchase of fixed assets 27 Sale of fixed assets 28 Net Cash Flow from Investing Activities (163.8) 260.4 50.8 47.7 111.0 (865.6) 778.4 218.9 calculating Beg of year net fixed assets Less disposal of fixed assets (net BV) Less depreciation expense Purchase of new fixed assets End of year fixed assets $6,431.7 ($154.7) ($1,213.5) $865.6 $5,929.1 Current portion of long-term debt Short-term debt (notes payable) Accounts payable Taxes payable Other accrued expenses Deferred revenue Other current liabilities Total current liabilities Long-term debt Deferred taxes Other long-term liabilities Total liabilities Preferred stock Common stock and additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Less: Treasury stock Total equity Total liabilities and equity 0.0 0.0 1,189.7 1,291.7 1,753.7 1,269.0 664.6 6,168.7 11,167.0 1,370.5 6,744.4 25,450.6 0.0 44.3 13,646.1 (502.1) 19.419.3 (6,231.0) $19,219.6 29 1,179.3 102.8 1,752.5 1,642.9 656.8 5,684.2 9,090.2 1,430.5 6,775.7 22,980.6 0.0 42.4 10,751.5 (330.3) 9.287.8 1,175.8 $24,156.4 Calculating End of year retained earnings Less net income Accumulated other comprehensive income/loss) Less end of year retained earnings Dividends paid 30 $13,646.10 $3,599.20 $171.80 $10,751.50 -$876.40 1,726.9 1.9 0.0 (876.4) (10,131.5) (9,279.1) 31 Cash Flow from Financing Activities 32 Net proceeds from inssuancence (repurchase) of long-term debt 33 Issuance (purchase of capital stock) 34 Net proceeds from inssuancence (repurchase) of notes payable 35 Payment of dividends 36 Treasury stock purchase 37 Net Cash Flow from Financing Activities 38 39 Cash Flows from Operating Activities (Direct Method) 40 Cash from sales 41 Cash for inventory 42 Cash for operations 43 Cash for interest 44 Cash for taxes 45 Cash from nonoperating activities 46 Net Cash Flow from Operations 47 . During the year, the company received cash of $778.4 when it sold fixed assets with a net book value of $154.7, which gave rise to the $623.7 gain that appears on the income statement Total depreciation and amortization expenses of $1,377.3 is made up of depreciation expense of $1,213.5 and amortization expense of $163.8. 25,948.6 (19,139.0) (2.941.3) (331.0) (257.3) (116.1) 3,163.9 Check figures: cash flow from operations = $3,809.8; cash flow from investments = -$600.4, and cash flow from financing = -$9,279.1