The statement of cash flows for IAC InterActive Corp., a diversified Internet company providing services through the
Question:
a. Calculate the free cash flow.
b. Explain why the cash flow from operations is nearly 600% greater than the net income.
c. Identify the major sources and uses of cash andinterpret.
Transcribed Image Text:
AC InterActive Corp. Statement of Cash Flows (annotated) For the Year Ended December 31, 2004 (in millions) Cash flows from operating activities: Net income Goodwill impairment Depreciation Amortization Other Net changes in current assets and liabilities 185,761 184,780 526,971 330,507 (111,591) 156,800 $1,273,228 Net cash provided by operating activities Cash flows from investing activities: Acquisitions Capital expenditures Investments in securities, net $(486,033) (223,787) (43,374) $(753.194) Net cash used in investing activities Cash flows from financing activities Borrowings, net Treasury stock purchases Proceeds from issuing common stock Preferred dividends Other, net $19,039 (430,295) 147,283 (13,053) 17,380 $ (259,646) S 260,388 Net cash used in financing activities Net increase in cash flows from continuing operations
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Related Book For
Financial Accounting An Integrated Statements Approach
ISBN: 978-0324312119
2nd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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