Week 5 Student Activity Student Name: ACTIVITY 53 Purpose: ANALYSIS OF DELL Date: Understand and interpret amounts reported on the statement of cash flows. Dell (DELL) STATEMENT OF CASH FLOWS (in millions) Fiscal Year Ended January 28 Net income Cash flows from operating activities: 2011 January 29 2010 January 30, 2009 $ 2,635 $1,433 $ 2,478 Adjustments to reconcile net income to net cash provided by operating activities: Stock-based compensation Depreciation and amortization 970 852 769 Provision for doubtful accounts 332 312 418 382 429 310 Deferred income taxes denominated in foreign currencies Effects of exchange rate changes on monetary assets and liabilities (4) 59 (115) Other (45) (52) 86 26 102 34 Changes in operating assets and liabilities, net of effects from acquisitions: Accounts receivable (707) (660) 480 Financing receivables (709) (1085) Inventories Other assets (248) (183) (302) 309 516 (225) Accounts payable (151) 2833 Deferred service revenue 551 135 (106) (3.117) 663 Accrued and other liabilities 421 (44) (13) Change in cash from operating activities 3,969 3,906 1894 Cash flows from investing activities: Investments: Purchases Maturities and sales Capital expenditures Proceeds from sale of facility and land Acquisition of business, net of cash received Purchase of financing receivables Change in cash from investing activities (1.360) (1383) (1.584) 1.358 1,538 2.333 (444) (367) (440) 18 16 (376) (3,613) 44 (176) 361) (1165) (3,809) 177 Cash flows from financing activities: Repurchase of common stock (800) (2.867) Issuance of common stock under employee plans 12 2 79 Issuance (payment) of commercial paper, net (176) 76 100 Proceeds from issuance of debt 3,069 2.058 1519 Repayments of debt (1,630) (122) (237) Other 2 (2) Change in cash from financing activities 477 2012 (1,406) Effect of exchange rate changes on cash and cash equivalents (3) 174 (77) Change in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year Income tax paid 3,278 2.283 588 10.635 8.352 7,764 $13,913 $ 10,635 $ 8,352 $ 435 $434 $ 800 Interest paid $ 188 $ 151 $ 74 Student Name: Date: Ql Review operating activities and comment on your observations. Q2 Review investing activities and comment on your observations. 03 Review financing activities and comment on your observations. 04 Dell reports a (strengthening / weakening) cash position. How can you tell? Support your response with at least five observations