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Sunbeam Corporation Statement of Cash Flows (amounts in millions) (Problem 3.23) Year 7 Year 6 Year 5 OPERATIONS Net income (loss) Depreciation and amortization Restructuring and asset impairment charges Deferred income taxes $ 109.4 38.6 $ 50.5 $(228.3) 47.4 44.2 283.7 57.8 (77.8) 25.1 Other additions 13.7 46.2 10.8 Other subtractions (84.6) (84.6) (100.8) (27.1) (21.7) (Increase) Decrease in accounts receivable (13.8) (4.5) (Increase) Decrease in inventories (11.6) (4.9) (Increase) Decrease in prepayments Increase (Decrease) in accounts payable Increase (Decrease) in other current liabilities (9.0) 2.7 (8.8) (1.6) 14.7 9.2 52.8 $ (8.3) (21.9) $ 14.2 (18.4) Cash Flow from Operations $ 81.5 INVESTING Fixed assets acquired Sale of businesses $ (58.3) $ (75.3) $(140.1) 91.0 65.3 Acquisitions of businesses Cash Flow from Investing $ 32.7 (9) S (76.2) (33.0) S(107.4) FINANCING Increase (Decrease) in short-term borrowing Increase in long-term debt $ 5.0 $ 30.0 $ 40.0 11.5 Issue of common stock 26.6 9.2 9.8 Decrease in long-term debt Acquisition of common stock Dividends Other financing transactions Cash Flow from Financing Change in Cash Cash-Beginning of year (12.2) (1.8) (5.4) (13.0) (3.4) (3.3) (3.3) (2) 0.5 $ 16.5 $ 40.9 (4) $ 45.2 $ (16.8) $ 27.9 $ 2.0 11.5 28.3 26.3 Cash-End of Year $ 52.4 $ 11.5 $ 28.3

Sunbeam Corporation Statement of Cash Flows (amounts in millions) (Problem 3.23) Year 7 Year 6 Year 5 OPERATIONS Net income (loss) Depreciation and amortization Restructuring and asset impairment charges Deferred income taxes $ 109.4 38.6 $ 50.5 $(228.3) 47.4 44.2 283.7 57.8 (77.8) 25.1 Other additions 13.7 46.2 10.8 Other subtractions (84.6) (84.6) (100.8) (27.1) (21.7) (Increase) Decrease in accounts receivable (13.8) (4.5) (Increase) Decrease in inventories (11.6) (4.9) (Increase) Decrease in prepayments Increase (Decrease) in accounts payable Increase (Decrease) in other current liabilities (9.0) 2.7 (8.8) (1.6) 14.7 9.2 52.8 $ (8.3) (21.9) $ 14.2 (18.4) Cash Flow from Operations $ 81.5 INVESTING Fixed assets acquired Sale of businesses $ (58.3) $ (75.3) $(140.1) 91.0 65.3 Acquisitions of businesses Cash Flow from Investing $ 32.7 (9) S (76.2) (33.0) S(107.4) FINANCING Increase (Decrease) in short-term borrowing Increase in long-term debt $ 5.0 $ 30.0 $ 40.0 11.5 Issue of common stock 26.6 9.2 9.8 Decrease in long-term debt Acquisition of common stock Dividends Other financing transactions Cash Flow from Financing Change in Cash Cash-Beginning of year (12.2) (1.8) (5.4) (13.0) (3.4) (3.3) (3.3) (2) 0.5 $ 16.5 $ 40.9 (4) $ 45.2 $ (16.8) $ 27.9 $ 2.0 11.5 28.3 26.3 Cash-End of Year $ 52.4 $ 11.5 $ 28.3

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Using information in the statement of cash flows for Year 7, indicate any signals that the firm might have engaged in aggressive revenue recognition and had not yet fixed its general operating problems.

The answer is in the book and I need a different answer. Please explain without copying from another source! It would be nice if you use your words. Thanks!

Sunbeam Corporation Statement of Cash Flows (amounts in millions) (Problem 3.23) Year 7 Year 6 Year 5 OPERATIONS $ 109.4 $ 50.5 44.2 Net income (loss) $(228.3) Depreciation and amortization 38.6 47.4 Restructuring and asset impairment charges 283.7 Deferred income taxes 57.8 (77.8) 25.1 Other additions 13.7 46.2 10.8 Other subtractions (84.6) (27.1) (21.7) (Increase) Decrease in accounts receivable (84.6) (13.8) (4.5) (Increase) Decrease in inventories (100.8) (9.0) (11.6) (4.9) (Increase) Decrease in prepayments Increase (Decrease) in accounts payable Increase (Decrease) in other current liabilities 2.7 (8.8) (1.6) 14.7 9.2 52.8 $ (8.3) (21.9) $ 14.2 (18.4) $ 81.5 Cash Flow from Operations INVESTING $ (58.3) $ (75.3) Fixed assets acquired Sale of businesses Acquisitions of businesses Cash Flow from Investing $(140.1) 91.0 65.3 $ 32.7 (,9) $ (76.2) (33.0) S(107.4) FINANCING $ 5.0 $ 30.0 Increase (Decrease) in short-term borrowing Increase in long-term debt Issue of common stock $ 40.0 11.5 - 26.6 9.2 9.8 Decrease in long-term debt Acquisition of common stock Dividends (12.2) (1.8) (5.4) (13.0) (3.4) (3.3) (3.3) Other financing transactions Cash Flow from Financing Change in Cash Cash-Beginning of year 0.5 $ 16.5 $ 40.9 11.5 $ 52.4 (4) $ 45.2 $ (16.8) (,2) $ 27.9 $ 2.0 26.3 $ 28.3 28.3 Cash-End of Year $ 11.5 Source: Sunbeam Corporation, Form 10-K for the Fiscal Year Ended 1997.
Transcribed Image Text:Sunbeam Corporation Statement of Cash Flows (amounts in millions) (Problem 3.23) Year 7 Year 6 Year 5 OPERATIONS $ 109.4 $ 50.5 44.2 Net income (loss) $(228.3) Depreciation and amortization 38.6 47.4 Restructuring and asset impairment charges 283.7 Deferred income taxes 57.8 (77.8) 25.1 Other additions 13.7 46.2 10.8 Other subtractions (84.6) (27.1) (21.7) (Increase) Decrease in accounts receivable (84.6) (13.8) (4.5) (Increase) Decrease in inventories (100.8) (9.0) (11.6) (4.9) (Increase) Decrease in prepayments Increase (Decrease) in accounts payable Increase (Decrease) in other current liabilities 2.7 (8.8) (1.6) 14.7 9.2 52.8 $ (8.3) (21.9) $ 14.2 (18.4) $ 81.5 Cash Flow from Operations INVESTING $ (58.3) $ (75.3) Fixed assets acquired Sale of businesses Acquisitions of businesses Cash Flow from Investing $(140.1) 91.0 65.3 $ 32.7 (,9) $ (76.2) (33.0) S(107.4) FINANCING $ 5.0 $ 30.0 Increase (Decrease) in short-term borrowing Increase in long-term debt Issue of common stock $ 40.0 11.5 - 26.6 9.2 9.8 Decrease in long-term debt Acquisition of common stock Dividends (12.2) (1.8) (5.4) (13.0) (3.4) (3.3) (3.3) Other financing transactions Cash Flow from Financing Change in Cash Cash-Beginning of year 0.5 $ 16.5 $ 40.9 11.5 $ 52.4 (4) $ 45.2 $ (16.8) (,2) $ 27.9 $ 2.0 26.3 $ 28.3 28.3 Cash-End of Year $ 11.5 Source: Sunbeam Corporation, Form 10-K for the Fiscal Year Ended 1997.
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