Discuss the relations between net income and cash flow from operations and among cashflows from operating, investing, and financing activities for the firm, especially for 2012. Identify signals that might raise concerns for an analyst.
Discuss the relations between net income and cash flow from operations and among cashflows from operating, investing, and financing activities for the firm, especially for 2012. Identify signals that might raise concerns for an analyst.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Discuss the relations between net income and
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Transcribed Image Text:Exhibit 3.23The Apollo Group Statement of Cash Flows (amounts in
thousands)(Problem 3.25)
Year Ended August 31,
2012
2011
2010
Cash flows provided by (used in) operating activities:
$ 417,006 $ 535,796 $ 521,581
Net income
Adjustments to reconcile net income to net cash provided by
operating activities:
Share-based compensation
Excess tax benefits from share-based compensation
Depreciation and amortization
78,705
70,040
64,305
(6,648)
147,035
(1,150)
(4,014)
178,234
159,006
Amortization of lease incentives
(15,510)
(18,822)
(13,358)
(1,705)
9,400
Amortization of deferred gains on sale-leasebacks
Impairment on discontinued operations
Goodwill and other intangibles impairment
Noncash foreign currency (gain) loss, net
Gain on sale of discontinued operations
(2,798)
(2,221)
16,788
219,927
1,662
184,570
(497)
(26,678)
643
Provision for uncollectible accounts receivable
146,742
4,725
181,297
282,628
177,982
Litigation charge (credit), net
(11,951)
Deferred income taxes
21,850
55,823
(125,399)
Changes in assets and liabilities, excluding the impact of
acquisitions and business dispositions:
Restricted cash and cash equivalents
61,073
64,725
(11,828)
Accounts receivable
(121,120)
(25,241)
(129,773)
(265,996)
Prepaid taxes
9,303
10,421
Other assets
(11,568)
12,525
(9,900)
(3,913)
2,183
Accounts payable
Student deposits
Deferred revenue
21,624
(58,740)
(70,120)
3,445
(39,154)
(79,488)
32,887
Accrued and other liabilities
(109,783)
(44,364)
(528)
1,033,242
Net cash provided by operating activities
Cash flows provided by (used in) investing activities:
Additions to property and equipment
Acquisitions, net of cash acquired
551,300
897,122
(115,187)
(162,573)
(168,177)
(73,736)
(5,497)
Maturities of marketable securities
10,000
5,000
Proceeds from sale-leaseback, net
169,018
Proceeds from dispositions, net
76,434
21,251
Collateralization of letter of credit
126,615
(126,615)
-
Other investing activities
Net cash (used in) provided by investing activities
(1,694)
-
(114,183)
164,311
(295,289)
Cash flows provided by (used in) financing activities:
Payments on borowings
Proceeds from borrowings
Apollo Group Class A common stock purchased for treasury
Issuance of Apollo Group Class A common stock
Noncontrolling interest contributions
Excess tax benefits from share-based compensation
Net cash used in financing activities
Exchange rate effect on cash and cash equivalents
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
(562,269)
(437,925)
(477,568)
629,145
410,051
(783,168)
475,454
(811,913)
(446,398)
11,949
24,903
19,671
2,460
6,875
1,150
4,014
6,648
(731,938)
(775,250)
(419,733)
(468)
712
(1,697)
(295,289)
286,895
316,523
1,571,664
1,284,769
968,246
$1,276,375
$1,571,664
$1,284,769
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