Question: Abdullah Company reported the following information on its statement of cash flows. Interest expense for the past three years has been $372, $420, and $514.

Abdullah Company reported the following information on its statement of cash flows.

Abdullah Company reported the following information on its state

Interest expense for the past three years has been $372, $420, and $514. The company does not pay dividends. What information about the company€™s future prospects is communicated by its investing and financing activities during this period? Does the company appear to be a good prospect for new debt financing to be spent on additional capitalassets?

(In millions) 2003 $3,195 $2,869 2,688 2005 2004 Net cash provided by operating activities Net cash from (used by) investing activities: Capital expenditures Sales of equipment and property Investments in other companies Other (2,661 (1,358) 305 0 (523) 293 (272) 392 257 0 27)(924) $(2,248) (1,680 $(1,190) Total investing activities Net cash from (used by) financing activities: Payments on long-term debt Repurchase of common stock (648) 2 740 200 (547) (2,130) (994) 627 0 614 Other Total financing activities $(914 ( $(1,516)

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Cash flow from operations has increased by 19 during the threeyear period 3195 2688 2688 It appears ... View full answer

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