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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
  1. Calculate the operating cash flow.
  2. Calculate the net capital spending.
  3. Calculate the change in net working capital.
  4. Calculate the cash flow to creditors.
  5. 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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