LO 12-2 12.11 Calculating Free Cash Flows. Dicks Sporting Goods is a chain of sa sporting goods retail stores offering a broad assortment of brand equipment, apparel, and footwear. Dick's Sporting Goods had its initial public offering of in fiscal 2003. Since then, Dick's Sporting Goods has grown its chain of retail stores rapic has acquired several other chains of retail sporting goods stores, including Golf Galan Chick's Sporting Goods. As of the end of the fiscal year ending in 2016, Dick's Sporting Crond operated 736 stores in 47 states of the United States. Exhibit 12.13 presents information the statement of cash flows and income statement for Dick's Sporting Goods for the fil ending in 2014 through 2016. Dick's Sporting Goods requires all of its cash and cash for operating liquidity and reports no interest income on the income statement. The effectie income tax rate for Dick's Sporting Goods during these years is 35%, line Exhibit 12.13 Dick's Sporting Goods Selected Information from the Statement of Cash Flows (amounts in thousands) (Problem 12.11) Fiscal year ended January 31, 2015 February 1, 2014 January 30, 2016 Operating Activities: $643514 605978 $403.870 $ 403,870 Net cash provided by operating activities Cash Flows Used in Investing Activities (349,007) 74,534 (30,547) (285,668) 11,000 (64,507) (370,028) Capital expenditures Proceeds from sale of other assets (2,406) (372434) Deposits & purchases of other assets S 305,020) $(39,175) Net cash used in investing activities Cash Flows From Financing Activities: Increase (decrease) in bank overdraft Payments on long-term debt and capital leases Proceeds from share issues Cash paid for treasury stock Cash dividends paid to stockholders Net cash provided by financing activities 43,508 (8,984) 57 420 (255,602) (64,432) $(228,178) $(163,483) 345,214 $ 161,731 s 2255 29,121 (537) 19,690 (357,276) (64,715) $(373,823) $(102,743) 221,679 (29,258) (925) 30,532 (200,000) (61,262) $(261,010) $ 39,948 181,731 Net Increase (Decrease) in Cash Cash, beginning of period 221,679 $ 2,631 118,936 Cash, end of period Cash paid during the year for interest Source: Dick's Sporting Goods, Form 10-K for the Fiscal Year Ended January 31, 2016 $ 3,308 REQUIRED a. Beginning with cash flows from operating activities, calculate free cash flows to all debt and equity capital stakeholders for Dick's Sporting Goods for fiscal years ending in 2014, 2015, and 2016. b. Beginning with cash flows from operating activities, calculate free cash flows for common equity shareholders for Dick's Sporting Goods for fiscal years ending in 2014, 2015, and 2016 c. Reconcile the amounts of free cash flows for common equity shareholders for Dick's 9 5 Sporting Goods for fiscal years ending in 2014, 2015, and 2016 with Dick's Sporting Goods' sources of cash flows from equity shareholders. d. In each of these three years, why do the free cash flows to all debt and equity capital 2 stakeholders differ from the free cash flows to common equity shareholders? LO 12-2 12.11 Calculating Free Cash Flows. Dicks Sporting Goods is a chain of sa sporting goods retail stores offering a broad assortment of brand equipment, apparel, and footwear. Dick's Sporting Goods had its initial public offering of in fiscal 2003. Since then, Dick's Sporting Goods has grown its chain of retail stores rapic has acquired several other chains of retail sporting goods stores, including Golf Galan Chick's Sporting Goods. As of the end of the fiscal year ending in 2016, Dick's Sporting Crond operated 736 stores in 47 states of the United States. Exhibit 12.13 presents information the statement of cash flows and income statement for Dick's Sporting Goods for the fil ending in 2014 through 2016. Dick's Sporting Goods requires all of its cash and cash for operating liquidity and reports no interest income on the income statement. The effectie income tax rate for Dick's Sporting Goods during these years is 35%, line Exhibit 12.13 Dick's Sporting Goods Selected Information from the Statement of Cash Flows (amounts in thousands) (Problem 12.11) Fiscal year ended January 31, 2015 February 1, 2014 January 30, 2016 Operating Activities: $643514 605978 $403.870 $ 403,870 Net cash provided by operating activities Cash Flows Used in Investing Activities (349,007) 74,534 (30,547) (285,668) 11,000 (64,507) (370,028) Capital expenditures Proceeds from sale of other assets (2,406) (372434) Deposits & purchases of other assets S 305,020) $(39,175) Net cash used in investing activities Cash Flows From Financing Activities: Increase (decrease) in bank overdraft Payments on long-term debt and capital leases Proceeds from share issues Cash paid for treasury stock Cash dividends paid to stockholders Net cash provided by financing activities 43,508 (8,984) 57 420 (255,602) (64,432) $(228,178) $(163,483) 345,214 $ 161,731 s 2255 29,121 (537) 19,690 (357,276) (64,715) $(373,823) $(102,743) 221,679 (29,258) (925) 30,532 (200,000) (61,262) $(261,010) $ 39,948 181,731 Net Increase (Decrease) in Cash Cash, beginning of period 221,679 $ 2,631 118,936 Cash, end of period Cash paid during the year for interest Source: Dick's Sporting Goods, Form 10-K for the Fiscal Year Ended January 31, 2016 $ 3,308 REQUIRED a. Beginning with cash flows from operating activities, calculate free cash flows to all debt and equity capital stakeholders for Dick's Sporting Goods for fiscal years ending in 2014, 2015, and 2016. b. Beginning with cash flows from operating activities, calculate free cash flows for common equity shareholders for Dick's Sporting Goods for fiscal years ending in 2014, 2015, and 2016 c. Reconcile the amounts of free cash flows for common equity shareholders for Dick's 9 5 Sporting Goods for fiscal years ending in 2014, 2015, and 2016 with Dick's Sporting Goods' sources of cash flows from equity shareholders. d. In each of these three years, why do the free cash flows to all debt and equity capital 2 stakeholders differ from the free cash flows to common equity shareholders