The consolidated statements of cash flows and related note disclosure for Sirius XM Canada Holdings Inc. are in Exhibits 5-16A and B. Sirius broadcasts satellite radio channels to subscribers.
a. In total, how much did Sirius’s cash and cash equivalents change during 2013? Was this an increase or a decrease? How did this compare with the previous year?
b. Did Sirius have net income or a net loss in 2013? How did this compare with the cash flows from operating activities? What was the largest difference between these two amounts?
c. What effect did the change in the company’s trade, other payables, and provisions have on cash flows from operating activities in 2013? What does this tell you about the balance owed to these creditors?
d. Did the balance of deferred revenue increase or decrease during 2013? Was this considered to be an inflow or an outflow of cash? What does this tell you about the trend in the amount of the customers’ prepaid subscription flees?
e. Calculate Sirius’s net free cash flow for 2013 and 2012. Is the trend positive or negative?
f. Sirius’s total liabilities were $370,878,874 at August 31, 2013, and $361,872,956 at August 31, 2012. Determine the company’s cash flows to total liabilities ratio. Comment on the change year over year. Would your perspective on the results of this ratio calculation change if you were advised that approximately 40% of Sirius’s liabilities were related to deferred revenue?
g. How did the dividends paid by Sirius to its shareholders compare with the company’s net income and cash flows from operating activities?

  • CreatedJune 11, 2015
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