1) Create a Cash Flow Summary for Applied Materials' Statement of Cash Flows, . Note that AMAT's statement has a lot more stuff in it than the Exhibit. That's ok, that's how the real world works. We want all the • . cash inflows on top and all the cash outflows on the bottom, no matter what their name. Cash from Operations is a single line in the Summary sheet. You don't need to do anything with all the various lines in the Operating section here. There are a few of combinations I want you to make. Leaving them out in their gross form gives an unrealistic impression of how AMAT is getting/using cash: 。 AMAT rolls investments over as they come due, so they're not really receiving cash from sales and using cash on purchases in the traditional sense. Please combine the Proceeds from Sales and Maturities of Investments with Purchases of Investments into a single line item, "Net Purchases of Investments." This belongs in the cash outflow section and will show whether they have decided to increase their investment portfolio through additional purchases or decrease their portfolio by selling investments off. о • Please also combine the two Commercial Paper items into a single line. For purposes of this worksheet, they didn't get cash' through commercial paper and then 'use cash' paying it off. It was just a wash. The Tax Withholding payments and Lease payments need to go on the statement, but feel free to ignore them from an analysis standpoint. They're both niche and immaterial. Fiscal Year Cash flows from operating activities: Net income Adjustments required to reconcile net income to cash provided by operating activities: Changes in operating assets and liabilities, net of amounts acquired: 2023 2022 2021 6,856 6,525 5,888 Depreciation and amortization 515 Severance and related charges Deferred income taxes Other 24 40 Share-based compensation 490 Accounts receivable 903 Inventories 207 Other current and non-current assets (48) Accounts payable and accrued (138) Contract liabilities (167) Income taxes payable (20) 38 ཟུཙྪཱསཱིཨ – བྷི8ཙིདྷནྟི། 394 148 80 (70) 346 (1,109) (1,989) (1,590) (405) (602) 465 755 396 36 8,700 5,442 Tax withholding payments for vested equity awards Cash provided by operating activities Cash flows from investing activities: Capital expenditures Cash paid for acquisitions, net of cash acquired Proceeds from sales and maturities of investments Purchases of investments Cash used in investing activities Cash flows from financing activities: Proceeds from commercial paper Repayments of commercial paper Proceeds from common stock issuances Common stock repurchases Payments of dividends to stockholders Other liabilities (1,106) (787) (668) (25) (441) (12) 1,268 1,363 1,471 (1,672) (1,492) (2,007) (1,535) (1,357) (1,216) 991 (900) 227 (2,189) 199 (6.103) 175 (3,750) (179) (266) (178) (975) (873) (838) Repayments of principals on finance leases (7)- Cash used in financing activities (3,032) (7,043) (4,591) Increase (decrease) in cash, cash equivalents and restricted cash equivalents Cash, cash equivalents and restricted cash equivalents - beginning of period Cash, cash equivalents and restricted cash equivalents-end of period 4,133 (3,001) (365) 2,100 5,101 5,466 6.233 2.100 5.101

1) Create a Cash Flow Summary for Applied Materials' Statement of Cash Flows, . Note that AMAT's statement has a lot more stuff in it than the Exhibit. That's ok, that's how the real world works. We want all the • . cash inflows on top and all the cash outflows on the bottom, no matter what their name. Cash from Operations is a single line in the Summary sheet. You don't need to do anything with all the various lines in the Operating section here. There are a few of combinations I want you to make. Leaving them out in their gross form gives an unrealistic impression of how AMAT is getting/using cash: 。 AMAT rolls investments over as they come due, so they're not really receiving cash from sales and using cash on purchases in the traditional sense. Please combine the Proceeds from Sales and Maturities of Investments with Purchases of Investments into a single line item, "Net Purchases of Investments." This belongs in the cash outflow section and will show whether they have decided to increase their investment portfolio through additional purchases or decrease their portfolio by selling investments off. о • Please also combine the two Commercial Paper items into a single line. For purposes of this worksheet, they didn't get cash' through commercial paper and then 'use cash' paying it off. It was just a wash. The Tax Withholding payments and Lease payments need to go on the statement, but feel free to ignore them from an analysis standpoint. They're both niche and immaterial. Fiscal Year Cash flows from operating activities: Net income Adjustments required to reconcile net income to cash provided by operating activities: Changes in operating assets and liabilities, net of amounts acquired: 2023 2022 2021 6,856 6,525 5,888 Depreciation and amortization 515 Severance and related charges Deferred income taxes Other 24 40 Share-based compensation 490 Accounts receivable 903 Inventories 207 Other current and non-current assets (48) Accounts payable and accrued (138) Contract liabilities (167) Income taxes payable (20) 38 ཟུཙྪཱསཱིཨ – བྷི8ཙིདྷནྟི། 394 148 80 (70) 346 (1,109) (1,989) (1,590) (405) (602) 465 755 396 36 8,700 5,442 Tax withholding payments for vested equity awards Cash provided by operating activities Cash flows from investing activities: Capital expenditures Cash paid for acquisitions, net of cash acquired Proceeds from sales and maturities of investments Purchases of investments Cash used in investing activities Cash flows from financing activities: Proceeds from commercial paper Repayments of commercial paper Proceeds from common stock issuances Common stock repurchases Payments of dividends to stockholders Other liabilities (1,106) (787) (668) (25) (441) (12) 1,268 1,363 1,471 (1,672) (1,492) (2,007) (1,535) (1,357) (1,216) 991 (900) 227 (2,189) 199 (6.103) 175 (3,750) (179) (266) (178) (975) (873) (838) Repayments of principals on finance leases (7)- Cash used in financing activities (3,032) (7,043) (4,591) Increase (decrease) in cash, cash equivalents and restricted cash equivalents Cash, cash equivalents and restricted cash equivalents - beginning of period Cash, cash equivalents and restricted cash equivalents-end of period 4,133 (3,001) (365) 2,100 5,101 5,466 6.233 2.100 5.101

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter14: Statement Of Cash Flows

Section: Chapter Questions

Problem 15MCQ: A worksheet approach to preparing the statement of cash flows a. is a useful aid. b. uses a...

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