Question $5$

You are researching Star Manufacturing and have found the following accounting statement of

cash flows for the most recent year. You also know that the company paid $$81$ million in current

taxes and had an interest expense of $$38$ million.

Use the accounting statement of cash flows to construct the financial statement of cash flows.

Star Manufacturing

Statement of Cash Flows

$($ $ in millions$)$

Cash flow from operating activities

Investing activities

Acquisition of fixed assets $,-$$$194$

Sale of fixed assets $,19$

Total cash flow from investing activities $,-$$${175}_{{?}_{?}}$

Cash flow from financing activities

Retirement of long$-$term debt

Proceeds from long$-$term debt sales

Dividends

Repurchase of stock

Proceeds from new stock issue

Total cash flow from financing activities

Change in cash $($on balance sheet$)$

$-$$$145$

$110$

$-67$

$-32$

$39$

$-$$$95$

$$12$