You are researching Time Manufacturing and have found the following accounting statement of cash flows for the most recent year. You also know that the company paid $98.1 million in current taxes and had an interest expense of $48.1 million. Operations Net income Depreciation TIME MANUFACTURING Statement of Cash Flows (in millions) Deferred taxes Changes in assets and liabilities Accounts receivable. Inventories Accounts payable Accrued expenses Other Total cash flow from operations Investing activities Acquisition of fixed assets Sale of fixed assets Total cash flow from investing activities Financing activities Retirement of long-term debt Proceeds from long-term debt sales Dividends Repurchase of stock Proceeds from new stock issue Total cash flow from financing activities Change in cash (on balance sheet) a. Calculate the operating cash flow. b. Calculate the net capital spending. c. Calculate the change in net working capital. d. Calculate the cash flow to creditors. e. Calculate the cash flow to stockholders. $174.0 94.1 19.1 a. Operating cash flow b. Net capital spending c. Change in net working capital d. Cash flow to creditors e. Cash flow to stockholders -18.1 22.1 17.1 -9.1 3.1 $ 302.3 -$ 214.0 23.1 -$198.9 -$ 163.0 117.0 -87.0 -14.0 45.0 -$102.0 $9.4 Note: For all requirements, a negative answer should be Indicated by a minus sign. Do not round Intermediate calculations and enter your answer in millions, rounded to 1 decimal place, e.g., 10.2 million would be entered as 10.2.
You are researching Time Manufacturing and have found the following accounting statement of cash flows for the most recent year. You also know that the company paid $98.1 million in current taxes and had an interest expense of $48.1 million. Operations Net income Depreciation TIME MANUFACTURING Statement of Cash Flows (in millions) Deferred taxes Changes in assets and liabilities Accounts receivable. Inventories Accounts payable Accrued expenses Other Total cash flow from operations Investing activities Acquisition of fixed assets Sale of fixed assets Total cash flow from investing activities Financing activities Retirement of long-term debt Proceeds from long-term debt sales Dividends Repurchase of stock Proceeds from new stock issue Total cash flow from financing activities Change in cash (on balance sheet) a. Calculate the operating cash flow. b. Calculate the net capital spending. c. Calculate the change in net working capital. d. Calculate the cash flow to creditors. e. Calculate the cash flow to stockholders. $174.0 94.1 19.1 a. Operating cash flow b. Net capital spending c. Change in net working capital d. Cash flow to creditors e. Cash flow to stockholders -18.1 22.1 17.1 -9.1 3.1 $ 302.3 -$ 214.0 23.1 -$198.9 -$ 163.0 117.0 -87.0 -14.0 45.0 -$102.0 $9.4 Note: For all requirements, a negative answer should be Indicated by a minus sign. Do not round Intermediate calculations and enter your answer in millions, rounded to 1 decimal place, e.g., 10.2 million would be entered as 10.2.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:**Time Manufacturing: Statement of Cash Flows (in millions)**
**Operations**
- Net income: $174.8
- Depreciation: 94.1
- Deferred taxes: 19.1
**Changes in Assets and Liabilities**
- Accounts receivable: -18.1
- Inventories: 22.1
- Accounts payable: 17.1
- Accrued expenses: -9.1
- Other: 3.1
**Total Cash Flow from Operations:** $302.3
**Investing Activities**
- Acquisition of fixed assets: -$214.0
- Sale of fixed assets: 23.1
**Total Cash Flow from Investing Activities:** -$198.9
**Financing Activities**
- Retirement of long-term debt: -$163.0
- Proceeds from long-term debt sales: 117.0
- Dividends: -87.0
- Repurchase of stock: -44.0
- Proceeds from new stock issue: 45.0
**Total Cash Flow from Financing Activities:** -$132.0
**Change in Cash (on balance sheet):** $9.4
### Calculations:
a. Calculate the operating cash flow.
b. Calculate the net capital spending.
c. Calculate the change in net working capital.
d. Calculate the cash flow to creditors.
e. Calculate the cash flow to stockholders.
**Note:** For all requirements, a negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in millions, rounded to 1 decimal place (e.g., 10.2 million would be entered as 10.2).
### Table for Answers:
- a. Operating cash flow
- b. Net capital spending
- c. Change in net working capital
- d. Cash flow to creditors
- e. Cash flow to stockholders
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