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 $231 million in current taxes and had an interest expense of $120 million. Use the accounting statement of cash flows to construct the financial statement of cash flows.

Transcribed Image Text:

TIME MANUFACTURING Statement of Cash Flows (in S millions) Operations Net income Depreciation Deferred taxes Changes in assets and liabilities S401 221 43 Accounts receivable Inventories Accounts payable Accrued expenses Other 51 41 Total cash flow from operations Investing activities $676 Acquisition of fixed assets Sale of fixed assets $415 53 $362 Total cash flow from investing activities Financing activities Retirement of long-term debt Proceeds from long-term debt sales Change in notes payable Dividends Repurchase of stock Proceeds from new stock issue -$240 131 12 198 Total cash flow from financing activities Change in cash (on balance sheet) 62 $265 S 49