Question 7. Answer the following questions related to the Statement of Cash Flows:
a. Interpret Alibaba Groups performance and financial activities for the fiscal year ended March 31, 2014 using cash flows from operating, investing, and financing activities from its Consolidated Statements of Cash Flows presented in its IPO Prospectus.
b. Generally speaking, how would a companys IPO directly or indirectly impact its cash flows from operating, investing, and financing activities?
ALIBABA GROUP HOLDING LIMITED CONSOLIDATED STATEMENTS OF CASH FLOWS 2012 Year eaded March 31, 2013 RMB RM RMB 2014 USS (Note 2) (in millions) 4,665 8,649 23,403 3,772 (24) 138 264 3 715 155 1,254 (68) (80) 245 (8) 805 130 1.259 3 (90) 21 (387) 1,339 315 2,844 1.269 44 135 3 25 150 4 175 3 6 104 120 203 1,466 442 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities (Gain) Loss on disposals of equity investees Realized and unrealized loss (gain) related to investment securities Change in fair value of other assets and liabilities Loss (Gain) on disposals of other subsidiaries Depreciation and amortization of property and equipment and land use rights Amortization of intangible assets Share-based compensation expense Equity-settled donation expense Impairment of goodwill and intangible assets Loss on disposals of property and equipment Share of results of equity investees Deferred income taxes Allowance for doubtful accounts relating to micro loans Changes in assets and liabilities, net of effects of acquisitions and disposals: Restricted cash and escrow receivables Loan receivables Prepayments, receivables and other assets Income tax payable Escrow money payable Accrued expenses, accounts payable and other liabilities Merchant deposits Deferred revenue and customer advances Net cash provided by operating activities Cash flows from investing activities: Decrease (Increase) in short-term investments, net (Increase) Decrease in restricted cash Decrease (Increase in trading investment securities, net Acquisitions of available for sale and held-to-maturity investment securities Disposals of available for sale investment securities Acquisitions of - Land use rights and construction in progress Other property, equipment and intangible assets Disposals of property and equipment Cash paid for business combinations, net of cash acquired Deconsolidation and disposal of subsidiaries, net of each proceeds Loans to employees, net of repayments Acquisitions of equity investees Disposals of equity investees Net cash (used in) provided by investing activities (113) (226) (240) 230 94 1,332 (974) (2,828) (354) (116) 976 3,657 2,338 437 14.476 (1.329) (9.175) (3,567) 1,005 1.344 3,992 1,628 1.605 26,379 | |# B 583 128 9,275 3,728 (2,108) 167 (508) 1,960 2.589 334 (12) (60) 26 (8.304) 199 (147) (2.972) 372 (1,491) (3.285) (1,419) (749) 1 (191) (20) (305) (761) (1,457) (1.046) 301 (52) (7) 1951 (344) (452) 167 (732) (46) (212) (16,468) N9 (32.997) (2,655) (125) The accompanying notes form an integral part of these consolidated financial statements, ALIBABA GROUP HOLDING LIMITED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) 2012 RMR Year ended March 31, 2013 2014 RMR RMR USS (Note 2(a (in millions) 618 264 (25) 71 (34) (827) Cash flows from financing activities: Issuance of ordinary shares, including repayment of loan and interest receivable on employee loans for the exercise of ordinary shares Repurchase of ordinary shares Issuance of ordinary shares for Partner Capital Investment Plan (Note 8(c)) Issuance of Convertible Preference Shares, net of direct incidental fees incurred Payment of dividend on Convertible Preference Shares Redemption of Redeemable Preference Shares Acquisitions of shares of Alibaba.com Limited Payment for privatization of Alibaba.com Limited Acquisition of the remaining noncontrolling interest in a subsidiary Dividend paid by a consolidated subsidiary to noncontrolling interests Disposals of partial interest in subsidiaries, net of related costs Proceeds from secuted borrowings relating to staicro loans Repayment of secured borrowings relating to micro loans Proceeds from current bank borrowings Repayment of current bank borrowings Proceeds from non-current bank borrowings Repayment of non-current bank borrowings Net cash provided by (used in financing activities Effect of exchange rate changes on cash and cash equivalents Increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 16,792 1,638 (2) (40,111) (157) 442 10,542 (103) (208) (5.131) (419) (15,134) (335) (9) 166 11 229 8,705 53,195 (229) (6,607) (46,029) 827 2,439 681 (706) (2,584) (423) 24,979 30,153 (24,788) 475 (1,406 9,364 (54 (76) (97) 9,571 13,539 2,649 7.286 16,857 30,396 16,857 30,396 33,045 8.575 (7,420 110 (68) 4,861 (3,997) 1,500 (15) 427 4,900 5,327
