Examine the statement of cash flows of Mirror, Inc. Suppose Mirrors operating activities provided, rather than used,
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Suppose Mirrors operating activities provided, rather than used, cash. Identify three things under the indirect method that could cause operating cash flows to bepositive.
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Mirror, Inc. Consolidated Statement of Cash Flows (Adapted, In millions) Year Ended December 31, 2012 Cash flows from operating activities: Net income S 786 Adjustment to reconcile net income to net cash used in operating activities: Depreciation and amortization Change in assets and liabilities, net of acquired businesses Accounts receivable Other current assets Accounts payable Accrued expenses and other liabilities Unearned revenue Income taxes payable Other, net Net cash used in operating activities (470) (160) (78) (238) 25 (266) 26 (153) Cash flows from investing activities: Purchase of property and equipment Purchase of investments Sale of investments Acquisitions of other companies S (1,593) (21,282) 19,286 (363) Net cash used in investing activities (3,952) Cash flows from financing activities: Proceeds from the issuance of common stock, net Other, net $ 835 Net cash provided by financing activities Other, net 1,213 18 (2,874) 4,155 S 1,281 Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year
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Related Book For
Financial accounting
ISBN: 978-0132751124
9th edition
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
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