Question
The following items are for Thin Lizzy Co.: Info as of December 31, 2014 (all in millions): 2014 Net Income = $900 million 2014 Accounts
The following items are for Thin Lizzy Co.:
Info as of December 31, 2014 (all in millions):
2014 Net Income = $900 million
2014 Accounts receivable = $50
2014 Inventories = $130
2014 Accounts payable = $70
2014 Deferred tax liabilities = $20
2014 Capex = $200
2014 Depreciation = $90
2014 Amortization = $20
Info as of December 31, 2015 (all in millions):
2015 Net Income = $1,000 million
2015 Depreciation = $100
2015 Amortization = $30
2015 Accounts receivable = $80
2015 Inventories = $200
2015 Accounts payable = $60
2015 Deferred tax liabilities = $60
2015 Capex = $250
2015 Acquisition of Dwayne Wayne Co. = $75
2015 Issuance of new common shares = $500
2015 Repurchase of shares outstanding = $200
2015 Repayment of long term debt = $20
2015 Dividends paid of $35
Using the information above, calculate cash from operations for 2015.
a. Positive $1,005
b. Positive $1,040
c. Positive $1,060
d. Positive $1,350
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