From the following Lowes cash-flow statement, build the firms cash-flow statement according to the direct method. The

Question:

From the following Lowe’s cash-flow statement, build the firm’s cash-flow statement according to the direct method. The interest payments in 2008 were equal to $280 million. (in millions) 2008

a. Cash flows from operating activities

Net earnings………………………………………………………………………. $2,195

Adjustments to reconcile net income to net cash provided by operating activities.... 1,927

Net cash provided by operating activities………………………………………… 4,122

Cash flows from investing activities

Proceeds from sale of short-term investments, net of sales…………………… 221

Purchase of long-term investments, net of sale………………………………… (154)

Increase in other long-term assets…………………………………………….. (56)

Property acquired, net of disposals…………………………………………… (3,237)

Net cash used in investing activities…………………………………………… (3,226)

b. Cash flows from financing activities

Net (decrease) increase in short-term borrowing…………………………… (57)

Repayment of long-term debt, net…………………………………………… (558)

Proceeds from issuance of common stock……………………………………… 174

Cash dividend payments……………………………………………………… (491)

Repurchase of common stock ………………………………………………….. (8)

Excess cash benefits of share-based payments……………………………….. 1

Net cash used in financing activities………………………………………….. (939)

Effect of exchange rate changes on cash………………………………………….. 7

Net (decrease) increase in cash and cash equivalents ………………………… (36)

Cash and cash equivalents, beginning of year………………………………… 281

Cash and cash equivalents, end of year………………………………………….. $ 245

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...