The following cash flows were reported by Techno Inc. in 2009 and 2008. (a) Explain the difference
Question:
(a) Explain the difference between net income and cash flow from operating activities for Techno in 2009.
(b) Analyze Techno Inc.'s cash flows for 2009 and2008.
Transcribed Image Text:
2009 (In thousands) Net income Noncash charges (credits) to income 2008 $316,354 $242,329 68,156 Depreciation and amortization Deferred taxes 62,591 15,39422814 $327,734 $399,904 Cash Provided (Used) by Operating Assets and Liabilities Recei vables Inventories Other current assets (288,174)(49,704) (159,419) (145,554) 3,832 73,68441079 $ 24,525 $177.387 (1,470) Accounts payable, accrued liabilities Total Cash Provided by Operations Investment activities Additions to plant and equipment Other investment activities (94,176) (93,136) 14408 (34,771) S 79,768 ($127,907 Net investment activities Financingactivities Purchases of treasury stock Dividends paid Net ch Additions to long-term borrowings Repayments of long-term borrowings (45,854) (39,267) (49,290)(22,523) 45,067 4,610 (250,564) $ 165353 ($262.677 anges in short-term borrowings 125,248 135,249 Net financing activities Increase (decrease) in cash Beginning cash balance Ending cash balance 110,110 ($213,197) 78,114 2,31 $188,224$
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a Cash provided by operations in 2009 is considerably less than net income The major reason is the 2882 million increase in accounts receivable Invent...View the full answer
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Related Book For
Understanding financial statements
ISBN: 978-0136086246
9th Edition
Authors: Lyn M. Fraser, Aileen Ormiston
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