Question

Radion Corporation reported a balance in Income Taxes Payable of $78.1 million at the beginning of the year, $60.1 million at the end of the year, and income tax expense for the year of $161.5 million. Using the format of Exhibit 6.12, indicate the effects of all these transactions on Radion’s statement of cash flows for the year.

Exhibit 6.12,
OPERATIONS
Cash Receipts from Customers . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . (1)
Less: Cash Payments to Suppliers, Employees, and Others. . . . . . . . . . −(2)
Cash Flow from Operations [= (1) – (2)]. . . . . . . . . . . . . . . . . . . . . . . . . −S1
Reconciliation of Net Income to Cash Flow from Operations
Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3)
Additions to Net Income to Compute Cash Flow from Operations .. . . . . +(4)
Subtractions from Net Income to Compute Cash Flow from Operations . −(5)
Cash Flow from Operations [= (3) + (4) – (5)] . . . . . . . . . . . . . . . . . . . . . . . S1
INVESTING
Proceeds from Dispositions of “Investing” Assets . . . . . . . . . . . . . . . . . . . +(6)
Cash Used to Acquire “Investing” Assets. . . . . . . . . . . . . . . . . . . . . . . . . . −(7)
Cash Flow from Investing [= (6) – (7)] . . . . . . . . . . . . . . . . . . . . . . . . . . .. . S2
FINANCING
Cash Provided by Increases in Debt or Capital Stock . . . . . . . . . . . . . . .. . +(8)
Cash Used to Reduce Debt or Capital Stock . . . . . . . . . . . . . . . . . . . . . . . −(9)
Cash Used for Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . −(10)
Cash Flow from Financing [= (8) – (9) – (10)] . . . . . . . . . . . . . . . . . . . . . . S3
Net Change in Cash [= S1 + S2 + S3]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11)
Cash, Beginning of the Period. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . S4
Cash, End of the Period [= (11) + S4] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S5



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  • CreatedMarch 04, 2014
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