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

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 $99.6 million in current taxes and had an interest expense of $49.6 million. TIME MANUFACTURING Statement of Cash Flows (in $ millions) Operations Net income $ 189.0 Depreciation 95.6 Deferred taxes 20.6 Changes in assets and liabilities Accounts receivable 19.6 Inventories 23.6 Accounts payable 18.6 Accrued expenses 10.6 Other 4.6 Total cash flow from operations $ 321.8 Investing activities Acquisition of fixed assets $ 199.0 Sale of fixed assets 24.6 Total cash flow from investing activities $ 174.4 Financing activities Retirement of long-term debt $ 178.0 Proceeds from long-term debt sales 132.0 Dividends 102.0 Repurchase of stock 29.0 Proceeds from new stock issue 60.0 Total cash flow from financing activities $ 117.0 Change in cash (on balance sheet) $ 30.4 a. 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, rounded to 1 decimal place, e.g., 10.2 million would be entered as 10.2.) b. Calculate the net capital spending. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in millions, rounded to 1 decimal place, e.g., 10.2 million would be entered as 10.2.) c. Calculate the change in net working capital. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in millions, rounded to 1 decimal place, e.g., 10.2 million would be entered as 10.2.) d. 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, rounded to 1 decimal place, e.g., 10.2 million would be entered as 10.2.) e. 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, rounded to 1 decimal place, e.g., 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

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Multinational Business Finance

Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett

12th Edition

0136096689, 978-0136096689

More Books

Students also viewed these Finance questions

Question

How should Disney manage their global diversity?

Answered: 1 week ago