Question

You are researching Time Manufacturing and have found the following accounting statement of cash flows for the most recent year. You also know that the company paid $ 98 million in current taxes and had an interest expense of $ 48 million. Use the accounting statement of cash flows to construct the financial statement of cash flows.
TIME MANUFACTURING
Statement of Cash Flows
($ in millions)
Operations
Net income .................. $173
Depreciation ............... 94
Deferred taxes .............. 19
Changes in assets and liabilities
Accounts receivable .............. – 18
Inventories ................ 22
Accounts payable .............. 17
Accrued expenses ............. – 9
Other .................. 3
Total cash flow from operations ......... $301
Investing activities
Acquisition of fixed assets .......... – $215
Sale of fixed assets ............ 23
Total cash flow from investing activities...... – $192
Financing activities
Retirement of long-term debt ....... – $162
Proceeds from long-term debt sales ...... 116
Change in notes payable ......... 6
Dividends ............... – 86
Repurchase of stock ............ – 13
Proceeds from new stock issue ....... 44
Total cash flow from financing activities ... – $95
Change in cash (on balance sheet) ..... $14


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  • CreatedAugust 28, 2014
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