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Problem 2-25 Cash Flows You are researching Time Manufacturing and have found the following accounting statement of cash flows for the most recent year. You
Problem 2-25 Cash Flows
You are researching Time Manufacturing and have found the following accounting statement of cash flows for the most recent year. You also know that the company paid $98.2 million in current taxes and had an interest expense of $48.2 million.
TIME MANUFACTURING | |
---|---|
Statement of Cash Flows | |
(in millions) | |
Operations | |
Net income | $ 175.0 |
Depreciation | 94.2 |
Deferred taxes | 19.2 |
Changes in assets and liabilities | |
Accounts receivable | 18.2 |
Inventories | 22.2 |
Accounts payable | 17.2 |
Accrued expenses | 9.2 |
Other | 3.2 |
Total cash flow from operations | $ 303.6 |
Investing activities | |
Acquisition of fixed assets | $ 213.0 |
Sale of fixed assets | 23.2 |
Total cash flow from investing activities | $ 189.8 |
Financing activities | |
Retirement of long-term debt | $ 164.0 |
Proceeds from long-term debt sales | 118.0 |
Dividends | 88.0 |
Repurchase of stock | 15.0 |
Proceeds from new stock issue | 46.0 |
Total cash flow from financing activities | $ 103.0 |
Change in cash (on balance sheet) | $ 10.8 |
- Calculate the operating cash flow.
- Calculate the net capital spending.
- Calculate the change in net working capital.
- Calculate the cash flow to creditors.
- Calculate the cash flow to stockholders.
Note: For all requirements, a negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in millions, rounded to 1 decimal place, e.g., 10.2 million would be entered as 10.2.
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