Question: You are researching Time Manufacturing and have found the following

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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