Sumitomo Metal Industries, Ltd., is a leading diversified manufacturer of steel products. During the year ended March
Question:
Sumitomo Metal Industries, Ltd., is a leading diversified manufacturer of steel products. During the year ended March 31, 2011, Sumitomo had a net loss of ¥36 billion on revenues of approximately ¥1,402 billion (or more than $17 billion in U.S. dollars). The following summarized information relates to Sumitomo’s statement of cash flows:
(billions of yen)
Depreciation and amortization ............... ¥127
Repayments of long-term debt ............... 130
Proceeds from long-term debt .............. 74
Other noncash revenues and expenses, net ......... 53
Decrease in receivables ................. 37
Increase in inventories .................. 14
Other, net ....................... 17
Acquisition of property, plant, equipment, and other assets .. 116
Increase in payables ................. 18
Compute the net cash provided by operating activities using the indirect method. All the information necessary for that task is provided, together with some information related to other elements of the cash flow statement. The format does not include parentheses to differentiate elements that increase cash from those that decrease cash but the distinction should be clear from the captions (except for “Other noncash revenues and expenses, net” and “Other, net,” which are both increases in cash).
Step by Step Answer:
Introduction to Financial Accounting
ISBN: 978-0133251036
11th edition
Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick