From the following Lowes cash-flow statement, build the firms cash-flow statement according to the direct method. The
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
Common StockCommon stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
Step by Step Answer:
Finance for Executives Managing for Value Creation
ISBN: 978-0538751346
4th edition
Authors: Gabriel Hawawini, Claude Viallet