Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are researching Time Manufacturing and have found the following accounting statement of cash flows for the most recent year. You also know that the

image text in transcribed
image text in transcribed
You are researching Time Manufacturing and have found the following accounting statement of cash flows for the most recent year. You also know that the company paid $98.4 million in current taxes and had an interest expense of $48.4 million. TIME MANUFACTURING Statement of Cash Flows (S in millions) Operations Net income Depreciation Deferred taxes Changes in assets and liabilities $1770 94.4 9.4 Accounts receivable Inventories Accounts payable Accrued expenses Other 18.4 22.4 17.4 9.4 3.4 Total cash flow from operations $306.2 Investing activities 211.0 Acquisition of fixed assets Sale of fixed assets s 23.4 Total cash flow from investing activities s 1876 Financing activities 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 166.0 120.0 90.0 170 48.0 activities 105.0 Change in cash (on balance sheet) $13.6 1. Calculate the operating cash flow. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in millions, for example, 10.2 million would be entered as 10.2.) 2. Calculate the capital spending. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in millions, for example, 10.2 million would be entered as 10.2.) 3. Calculate the net working capital cash flow. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in millions, for example, 10.2 million would be entered as 10.2.) 4. Calculate the cash flow to creditors. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in millions, for example, 10.2 million would be entered as 10.2.) 5. Calculate the cash flow to stockholders. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in millions, for example, 10.2 million would be entered as 10.2.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions