The data below are taken from the annual reports of four companies. ● Year ending: Units: Income Statement Net Sales - COGS (excluding Dep.) Depreciation - SG&A Expense EBIT - Interest - Taxes * = Net Income Dividends Retained Earnings Balance Sheet ** Current Assets Net Fixed Assets Total Assets Current Liabilities Long-Term Debt Com Stock & PIC - Treasury Stock*** Acc. Retain. Earn Total Liab. & SE * As of: American Airlines 31 Dec 2020 $ billions Dec 2020 11.1 50.9 62.0 16.6 41.0 6.9 0.0 -2.5 62.0 17.3 19.7 2.4 3.5 -8.3 1.2 -2.6 -6.9 0.0 -6.9 Dec 2019 8.2 51.8 60.0 18.3 33.4 3.9 0.0 4.4 60.0 Wyndham Hotels 31 Dec 2020 $ billions Dec 2020 0.8 3.9 4.7 0.3 2.6 1.5 0.4 0.7 4.7 1.3 1.2 0.1 0.1 -0.1 0.1 0.0 -0.2 0.0 -0.2 Dec 2019 0.5 4.1 4.6 0.5 2.1 1.5 0.4 0.9 4.6 Peloton 30 Jun 2021 $ billions Jun 2021 2.8 1.7 4.5 1.3 1.5 2.6 0.0 -0.9 4.5 4.0 2.6 0.1 1.4 -0.1 0.1 0.0 -0.2 0.0 -0.2 Jun 2020 2.2 0.8 Too 3.0 0.8 0.5 2.4 0.0 -0.7 3.0 Walmart 31 January 2021 $ billions Jan 2021 90.1 162.4 252.5 92.6 58.0 13.1 0.0 88.8 252.5 566.4 420.3 11.2 116.3 18.6 2.2 5.3 11.1 6.2 4.9 Jan 2020 61.8 174.7 236.5 77.8 64.2 10.6 0.0 83.9 236.5 A negative tax, as for American Airlines, is a tax rebate (credit). Subtracting a negative tax from EBIT is equivalent to adding a (positive) tax rebate to EBIT. ** For each company the balance sheet on the left (right) is the ending (starting) balance sheet. *** Treasury stock is subtracted from the other liability accounts because it is a "contra account", an asset appearing on the liability side of the balance sheet. Treasury stock itself is either zero or positive. For each company: Compute the components of the cash flow diagram (i.e. Arrows 1-5). Show your work. Draw the free cash flow diagram and label it with cash flow dollar amounts and arrows pointing in the directions indicated by the dollar amounts. Write a brief paragraph describing what the dollar amounts imply about how cash flowed during the year. Describe the action in the diagram from left to right Use the template on the next page (or a reasonable facsimile) to record your answers. Put your answer for each company on a separate page.

The data below are taken from the annual reports of four companies. ● Year ending: Units: Income Statement Net Sales - COGS (excluding Dep.) Depreciation - SG&A Expense EBIT - Interest - Taxes * = Net Income Dividends Retained Earnings Balance Sheet Current Assets Net Fixed Assets Total Assets Current Liabilities Long-Term Debt Com Stock & PIC - Treasury Stock* Acc. Retain. Earn Total Liab. & SE * As of: American Airlines 31 Dec 2020 $ billions Dec 2020 11.1 50.9 62.0 16.6 41.0 6.9 0.0 -2.5 62.0 17.3 19.7 2.4 3.5 -8.3 1.2 -2.6 -6.9 0.0 -6.9 Dec 2019 8.2 51.8 60.0 18.3 33.4 3.9 0.0 4.4 60.0 Wyndham Hotels 31 Dec 2020 $ billions Dec 2020 0.8 3.9 4.7 0.3 2.6 1.5 0.4 0.7 4.7 1.3 1.2 0.1 0.1 -0.1 0.1 0.0 -0.2 0.0 -0.2 Dec 2019 0.5 4.1 4.6 0.5 2.1 1.5 0.4 0.9 4.6 Peloton 30 Jun 2021 $ billions Jun 2021 2.8 1.7 4.5 1.3 1.5 2.6 0.0 -0.9 4.5 4.0 2.6 0.1 1.4 -0.1 0.1 0.0 -0.2 0.0 -0.2 Jun 2020 2.2 0.8 Too 3.0 0.8 0.5 2.4 0.0 -0.7 3.0 Walmart 31 January 2021 $ billions Jan 2021 90.1 162.4 252.5 92.6 58.0 13.1 0.0 88.8 252.5 566.4 420.3 11.2 116.3 18.6 2.2 5.3 11.1 6.2 4.9 Jan 2020 61.8 174.7 236.5 77.8 64.2 10.6 0.0 83.9 236.5 A negative tax, as for American Airlines, is a tax rebate (credit). Subtracting a negative tax from EBIT is equivalent to adding a (positive) tax rebate to EBIT. For each company the balance sheet on the left (right) is the ending (starting) balance sheet. * Treasury stock is subtracted from the other liability accounts because it is a "contra account", an asset appearing on the liability side of the balance sheet. Treasury stock itself is either zero or positive. For each company: Compute the components of the cash flow diagram (i.e. Arrows 1-5). Show your work. Draw the free cash flow diagram and label it with cash flow dollar amounts and arrows pointing in the directions indicated by the dollar amounts. Write a brief paragraph describing what the dollar amounts imply about how cash flowed during the year. Describe the action in the diagram from left to right Use the template on the next page (or a reasonable facsimile) to record your answers. Put your answer for each company on a separate page.

Oh no! Our experts couldn't answer your question.

Don't worry! We won't leave you hanging. Plus, we're giving you back one question for the inconvenience.

Submit your question and receive a step-by-step explanation from our experts in as fast as 30 minutes.

You have no more questions left.

Message from our expert:

Hi and thanks for your question! Unfortunately, your question violates our terms of use. Try rephrasing your question or asking a new one below. We've credited a question back to your account. Apologies for the inconvenience.

Your Question:

The data below are taken from the annual reports of four companies.
●
Year ending:
Units:
Income Statement
Net Sales
- COGS (excluding Dep.)
Depreciation
- SG&A Expense
EBIT
- Interest
- Taxes *
= Net Income
Dividends
Retained Earnings
Balance Sheet **
Current Assets
Net Fixed Assets
Total Assets
Current Liabilities
Long-Term Debt
Com Stock & PIC
- Treasury Stock***
Acc. Retain. Earn
Total Liab. & SE
*
As of:
American Airlines
31 Dec 2020
$ billions
Dec 2020
11.1
50.9
62.0
16.6
41.0
6.9
0.0
-2.5
62.0
17.3
19.7
2.4
3.5
-8.3
1.2
-2.6
-6.9
0.0
-6.9
Dec 2019
8.2
51.8
60.0
18.3
33.4
3.9
0.0
4.4
60.0
Wyndham Hotels
31 Dec 2020
$ billions
Dec 2020
0.8
3.9
4.7
0.3
2.6
1.5
0.4
0.7
4.7
1.3
1.2
0.1
0.1
-0.1
0.1
0.0
-0.2
0.0
-0.2
Dec 2019
0.5
4.1
4.6
0.5
2.1
1.5
0.4
0.9
4.6
Peloton
30 Jun 2021
$ billions
Jun 2021
2.8
1.7
4.5
1.3
1.5
2.6
0.0
-0.9
4.5
4.0
2.6
0.1
1.4
-0.1
0.1
0.0
-0.2
0.0
-0.2
Jun 2020
2.2
0.8
Too
3.0
0.8
0.5
2.4
0.0
-0.7
3.0
Walmart
31 January 2021
$ billions
Jan 2021
90.1
162.4
252.5
92.6
58.0
13.1
0.0
88.8
252.5
566.4
420.3
11.2
116.3
18.6
2.2
5.3
11.1
6.2
4.9
Jan 2020
61.8
174.7
236.5
77.8
64.2
10.6
0.0
83.9
236.5
A negative tax, as for American Airlines, is a tax rebate (credit). Subtracting a negative tax from EBIT is equivalent to
adding a (positive) tax rebate to EBIT.
** For each company the balance sheet on the left (right) is the ending (starting) balance sheet.
*** Treasury stock is subtracted from the other liability accounts because it is a "contra account", an asset appearing on the
liability side of the balance sheet. Treasury stock itself is either zero or positive.
For each company:
Compute the components of the cash flow diagram (i.e. Arrows 1-5). Show your work.
Draw the free cash flow diagram and label it with cash flow dollar amounts and arrows pointing in the directions
indicated by the dollar amounts.
Write a brief paragraph describing what the dollar amounts imply about how cash flowed during the year. Describe
the action in the diagram from left to right
Use the template on the next page (or a reasonable facsimile) to record your answers. Put your answer for each company
on a separate page.

Want to see the full answer?

Check out a sample Q&A here

See Solution

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.