Question

From the following Lowe’s cash-flow statement, build the firm’s cash-flow statement according to the direct method. The interest payments in 2008 were equal to $280 million. (in millions) 2008
a. Cash flows from operating activities
Net earnings............................ $2,195
Adjustments to reconcile net income to net cash provided by operating activities.... 1,927
Net cash provided by operating activities................ 4,122
Cash flows from investing activities
Proceeds from sale of short-term investments, net of sales........ 221
Purchase of long-term investments, net of sale............. (154)
Increase in other long-term assets................... (56)
Property acquired, net of disposals................. (3,237)
Net cash used in investing activities................. (3,226)
b. Cash flows from financing activities
Net (decrease) increase in short-term borrowing........... (57)
Repayment of long-term debt, net................. (558)
Proceeds from issuance of common stock............... 174
Cash dividend payments..................... (491)
Repurchase of common stock ..................... (8)
Excess cash benefits of share-based payments.............. 1
Net cash used in financing activities.................. (939)
Effect of exchange rate changes on cash.................. 7
Net (decrease) increase in cash and cash equivalents .......... (36)
Cash and cash equivalents, beginning of year............. 281
Cash and cash equivalents, end of year.................. $ 245


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  • CreatedMarch 27, 2015
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