The data below are taken from the annual reports of four companies. Delta Airlines Inc. Hyatt Hotels Corp. Amazon.com Inc. Kroger Co. 31 Dec 2020 $ billions 31 Dec 2020 $ billions 31 Dec 2020 S billions 28 February 2021 S billions Year ending Units: Income Statement Net Sales -COGS (excluding Dep.) Depreciation SG&A Expense = EBIT Interest Taxes = Net Income 10.7 21.3 2.3 1.8 - 14.7 0.9 -3.2 - 12.4 2.0 2.1 0.4 0.3 -0.8 0.1 -0.1 -0.8 389.1 216.6 16.7 129.9 -25.9 1.6 29 21.4 133.3 101.0 3.4 25.1 3.8 0.5 0.8 2.5 I Dividends Retained Earnings 0.0 - 12.4 0.0 -0.8 0.0 21.4 0.5 2.0 As of Dec 20 Dec 19 Dec 20 Dec 19 Dec 20 Dec 19 Feb 21 Feb 20 Balance Sheet Current Assets Net Fixed Assets Total Assets 17.4 54.6 72.0 8.3 56.2 64.5 1.7 6.7 8.4 132.7 188.5 3212 96.3 128.9 225.2 12.5 39.1 51.6 F1 10.9 370 479 13.5 55.6 1.5 Current Liabilities Long-Term Debt Com Stock & PIC - Treasury Stock*** Ace Retain. Earn Total Liab, & SE 17.1 32.1 1.5 0.0 13.8 64.5 0.7 5.2 00 0.0 32 9.1 1.1 3.3 0.0 0.0 4.0 8.4 JU 1103 117.3 42.9 1.9 526 3212 73.5 88.7 33.7 1.9 312 225 2 13.8 27.6 5.4 18.2 23.0 51.6 11.6 27.1 5.2 17.0 210 47.9 0.0 14 72.0 A negative tax, as for Delta and Hyatt, is a tax rebate (credit). Subtracting a negative tax from EBIT is equivalent to - For each company the balance sheet on the left (right) is the ending (starting) balance sheet. *** Treasury stock is subtracted from the other liability accounts because it is a contra account, an asset appearing on the liability side of the balance sheet. Treasury stock itself is either zero or positive. For each company: Compute the components of the cash flow diagram (i.e. Arrows 1-5). Show your work Draw the free cash flow diagram and label it with cash flow dollar amounts and arrows pointing in the directions indicated by the dollar amounts. Write a brief paragraph describing what the dollar amounts imply about how cash flowed during the year. Describe the action in the diagram from left to right . . The data below are taken from the annual reports of four companies. Delta Airlines Inc. Hyatt Hotels Corp. Amazon.com Inc. Kroger Co. 31 Dec 2020 $ billions 31 Dec 2020 $ billions 31 Dec 2020 S billions 28 February 2021 S billions Year ending Units: Income Statement Net Sales -COGS (excluding Dep.) Depreciation SG&A Expense = EBIT Interest Taxes = Net Income 10.7 21.3 2.3 1.8 - 14.7 0.9 -3.2 - 12.4 2.0 2.1 0.4 0.3 -0.8 0.1 -0.1 -0.8 389.1 216.6 16.7 129.9 -25.9 1.6 29 21.4 133.3 101.0 3.4 25.1 3.8 0.5 0.8 2.5 I Dividends Retained Earnings 0.0 - 12.4 0.0 -0.8 0.0 21.4 0.5 2.0 As of Dec 20 Dec 19 Dec 20 Dec 19 Dec 20 Dec 19 Feb 21 Feb 20 Balance Sheet Current Assets Net Fixed Assets Total Assets 17.4 54.6 72.0 8.3 56.2 64.5 1.7 6.7 8.4 132.7 188.5 3212 96.3 128.9 225.2 12.5 39.1 51.6 F1 10.9 370 479 13.5 55.6 1.5 Current Liabilities Long-Term Debt Com Stock & PIC - Treasury Stock*** Ace Retain. Earn Total Liab, & SE 17.1 32.1 1.5 0.0 13.8 64.5 0.7 5.2 00 0.0 32 9.1 1.1 3.3 0.0 0.0 4.0 8.4 JU 1103 117.3 42.9 1.9 526 3212 73.5 88.7 33.7 1.9 312 225 2 13.8 27.6 5.4 18.2 23.0 51.6 11.6 27.1 5.2 17.0 210 47.9 0.0 14 72.0 A negative tax, as for Delta and Hyatt, is a tax rebate (credit). Subtracting a negative tax from EBIT is equivalent to - For each company the balance sheet on the left (right) is the ending (starting) balance sheet. *** Treasury stock is subtracted from the other liability accounts because it is a contra account, an asset appearing on the liability side of the balance sheet. Treasury stock itself is either zero or positive. For each company: Compute the components of the cash flow diagram (i.e. Arrows 1-5). Show your work Draw the free cash flow diagram and label it with cash flow dollar amounts and arrows pointing in the directions indicated by the dollar amounts. Write a brief paragraph describing what the dollar amounts imply about how cash flowed during the year. Describe the action in the diagram from left to right
