Question

Information based on and adapted from the statement of cash flows of Seller Redbud, a U.S. retailer, appears in Exhibit 1.11. This firm reports all amounts in thousands of U.S. dollars ($). Answer the following questions that pertain to the information in this exhibit.
a. Did Seller Redbud generate cash inflows or outflows from operating activities in the year presented, and in what amount?
b. Did Seller Redbud generate cash inflows or outflows from investing activities in the year presented, and in what amount?
c. Did Seller Redbud generate cash inflows or outflows from financing activities in the year presented, and in what amount?
d. What was Seller Redbud’s net cash flow for the year presented?
e. What was the change in the cash balance between the beginning and end of the year presented? What caused this change?
Year ending
January 31,
(in thousands of US$) 2013
Cash Flows from Operating Activities:
Net earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 562,808
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157,770
Amortization of bond premium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,538
Stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,755
Tax benefit from stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . 2,719
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,315
(Increase) decrease in assets, net of effect of acquisition:
Merchandise inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (96,673)
Trading investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,020)
Other current assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (16,217)
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 529
(Decrease) increase in liabilities, net of effect of acquisition:
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (31,764)
Accrued expenses and other current liabilities . . . . . . . . . . . . . . . . . . . . . . . 15,774
Merchandise credit and gift card liabilities . . . . . . . . . . . . . . . . . . . . . . . . . 24,430
Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (74,530)
Deferred rent and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,102
Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . 614,536
Cash Flows from Investing Activities:
Purchase of held-to-maturity investment securities . . . . . . . . . . . . . . . . . . . —
Redemption of held-to-maturity investment securities . . . . . . . . . . . . . . . . . 494,526
Purchase of available-for-sale investment securities . . . . . . . . . . . . . . . . . . . (1,495,155)
Redemption of available-for-sale investment securities . . . . . . . . . . . . . . . . 1,546,430
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (358,210)
Payment for acquisition, net of cash acquired . . . . . . . . . . . . . . . . . . . . . . . (85,893)
Net cash provided by (used in) investing activities . . . . . . . . . . . . . . . . . . . 101,698
Cash Flows from Financing Activities:
Proceeds from exercise of stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,672
Excess tax benefit from stock-based compensation. . . . . . . . . . . . . . . . . . . 5,990
Repurchase of common stock, including fees . . . . . . . . . . . . . . . . . . . . . . . (734,193)
Payment of deferred purchase price for acquisition . . . . . . . . . . . . . . . . . . . —
Net cash used in financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (705,531)
Net increase (decrease) in cash and cash equivalents . . . . . . . . . . . . . . . . . 10,703
Cash and cash equivalents:
Beginning of period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213,381
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... $ 224,084



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  • CreatedMarch 04, 2014
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