Here attached is a cash flow accounting questions. Please let me know if you have any questions.

Statement of Cash Flows - Hertz Global Holdings, Inc. Hertz (NYSE: HTZ) is a car and equipment rental company. The car rental segment operates a fleet of approximately 285,000 cars in the United States and 150,000 cars internationally. The company's average holding period for a rental car is fifteen months in the United States and twelve months internationally. Hertz acquires many of its cars as \"programs cars\". For program cars, the manufacturers agree to repurchase the cars at a specified price, which is generally based on a predetermined percentage of the original car cost. This program limits Hertz's residual risk; however, typically the acquisition cost is higher for these program cars. The company was founded in 1918 and is headquartered in Park Ridge, New Jersey. 1) Hertz makes five adjustments (ignoring 'Other adjustments') to net income before including the changes in operating assets and liabilities. List each of these five items and briefly explain why each of these items is added (subtracted) from net income to calculate Net Cash Provided by Operating Activities. 2) Did receivables increase or decrease from the end of 2011 to the end of 2012? Did accrued liabilities increase or decrease from the end of 2011 to the end of 2012? 3) How much cash did Hertz pay out to investors in the form of dividends and/or share repurchases in 2012? (Ignore other financing activities.) 4) What is the largest asset reported on Hertz's balance sheet? Notice that Hertz does not separately classify assets as 'current' and 'long-term'. Do you think the largest asset is a current or long-term asset? Why? 5) Notice that the largest cash outflow (inflow) relates to rental car acquisition (disposal). a. In which section of the cash flow statement are these cash flows reported? b. Select balance sheet and cash flow information for Coinstar (parent of Redbox), Aaron's, and Men's Wearhouse is attached. Coinstar rents DVDs (called content library), Aaron's rents furniture (called lease merchandise), and Men's Wearhouse rents tuxedos. In which section of the cash flow statement does each of these companies report the cash outflows related to obtaining their rental products? c. Do you think Hertz reports the cash flows related to the acquisition and disposal of rental cars in the appropriate section? If yes, explain why. If no, indicate which section you would report these cash flows and explain why. 6) In 2014, Hertz announced that there were material errors in its 2011-2013 financial statements. The full extent of the errors has not yet been determined and the company has not filed any quarterly financial statements for 2014. So far, we know of two accounting issues: (i) Hertz under-depreciated the self-service kiosks and (ii) Hertz underestimated the amount of bad debt expense related to receivables from customers for damaged rental vehicles. What effect do each of these errors have on 2012 operating cash flows? Christine Petrovits, The College of William and Mary 7) What is the Book Value of the assets that Hertz sold during the year? 8) If Hertz had leased the cars under operating leases, in which section would the cash flows be reported? Christine Petrovits, The College of William and Mary Hertz Global Holdings, Inc. Consolidated Balance Sheet December 31, 2012 (in thousands) Cash and cash equivalents Receivables, less allowance for doubtful accounts of $25,113 Inventories, at lower of cost or market Prepaid expenses and other assets $ 533,255 2,458,230 105,728 470,120 Revenue earning equipment, at cost Less accumulated depreciation Revenue earning equipment, net 15,831,227 (2,922,891) 12,908,336 Property and equipment, at cost Less accumulated depreciation Property and equipment, net 2,549,882 (1,113,496) 1,436,386 Other intangible assets, net Goodwill 4,032,111 1,341,872 Total assets $ 23,286,038 Total liabilities $ 20,778,733 Total equity $ 2,507,305 Total liabilities and equity $ 23,286,038 Christine Petrovits, The College of William and Mary Hertz Global Holdings, Inc. Consolidated Statement of Cash Flows Year ended December 31, 2012 (in thousands) Cash flows from operating activities: Net income $ Adjustments to reconcile net income (loss) to cash provided by operating activities: Depreciation of revenue earning equipment Depreciation of property and equipment Amortization of other intangible assets Stock-based compensation charges Gain on sale of property and equipment Other adjustments Changes in operating assets and liabilities, net of effects of acquisition: Receivables Inventories, prepaid expenses and other assets Accounts payable Accrued liabilities Accrued taxes Public liability and property damage Net cash provided by operating activities Cash flows from investing activities: Revenue earning equipment expenditures Proceeds from disposal of revenue earning equipment Property and equipment expenditures Proceeds from disposal of property and equipment Acquisitions, net of cash acquired Other investing activities Net cash used by investing activities 243,079 2,068,378 172,582 84,096 30,255 (8,309) 290,634 (157,732) (30,802) 49,896 (22,554) 2,801 (4,341) 2,717,983 (9,613,239) 7,125,096 (312,786) 137,694 (1,904,649) (178,887) (4,746,771) Cash flows from financing activities: Proceeds from issuance of long-term debt Repayment of long-term debt Short-term borrowings: Proceeds Repayments Proceeds (repayments) under the revolving lines of credit, net Other financing activities Net cash provided by financing activities 438,387 (1,280,143) 1,280,164 (93,277) 1,630,264 Net change in cash and cash equivalents during the period Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period (398,524) 931,779 533,255 2,237,280 (952,147) $ Christine Petrovits, The College of William and Mary Current Assets: Cash and cash equivalents Accounts receivable, net of allowances of $2,003 and $1,586 Content library Deferred income taxes Prepaid expenses and other current assets Total current assets Property and equipment, net Notes receivable Deferred income taxes Goodwill and other intangible assets Other long-term assets Total assets Dec. 31, 2012 $ 282,894 58,331 177,409 7,187 29,686 555,507 571,358 26,731 1,373 358,829 47,927 $ 1,561,725 2012 Operating Activities: Net income Adjustments to reconcile net income to net cash flows from operating activities from continuing operations: Depreciation and other Amortization of intangible asset Share-based payments expense Other Cash flows from changes in operating assets and liabilities: Accounts receivable Content library Prepaid expenses and other current assets Other assets Accounts payable Accrued payable to retailers Other accrued liabilities Net cash flows from operating activities Investing Activities: Purchases of property and equipment Proceeds from sale of property and equipment Acquisition of NCR DVD kiosk business Equity investments Christine Petrovits, The College of William and Mary Net cash flows from investing activities $ 150,230 179,147 7,504 19,362 90,026 (17,061) (30,693) (6,963) 858 58,248 10,461 2,787 $ $ 463,906 (208,054) 1,131 (100,000) (39,727) (346,650) Feb. 02, 2013 CURRENT ASSETS: Cash and cash e quivalents Accounts receivable, net Inventories Other current assets Total current assets PROPERTY AND EQUIPMENT, AT COST: Land Buildings Leasehold i mprovements Furniture, fixtures and e quipment Less accumulated depreciation and amortization Net property and e quipment TUXEDO RENTAL PRODUCT, net GOODWILL INTANGIBLE ASSETS, net OTHER ASSETS TOTAL ASSETS $ 156,063 63,010 556,531 79,549 855,153 18,524 107,073 439,079 473,450 1,038,126 (649,008) 389,118 126,825 87,835 32,442 4,974 $ 1,496,347 2013 OPERATING ACTIVITIES: Net e arnings Adjustmentss: Depreciation and amortization Tuxedo rental product amortization Asset i mpairment charges Loss on disposition of assets Share-based compensation Other Changes in operating assets and liabilities: Accounts receivable Inventories Tuxedo rental product Other assets Accounts payable, accrued e xpenses and other current liabilities Income taxes payable Other l iabilities Net cash provided by operating activities $ 132,063,000 84,979,000 28,315,000 482,000 1,958,000 16,515,000 3,213,000 (6,447,000) 16,026,000 (55,281,000) (11,089,000) 9,103,000 5,172,000 721,000 $ 225,730,000 INVESTING ACTIVITIES: Capital e xpenditures (121,433,000) Investment i n trademarks, tradenames and other assets (2,075,000) Proceeds from sales of property and e quipment 33,000 $ Christine sed in investing Cctivities f William and Mary (123,475,000) Net cash u Petrovits, The aollege o Christine Petrovits, The College of William and Mary