Excerpts from the financial statements of Stanley Black & Decker, Inc., follow. From Stanley Black & Deckers
Question:
Excerpts from the financial statements of Stanley Black & Decker, Inc., follow.
From Stanley Black & Decker’s Accounts receivable note:
Required:
1. Determine the difference between the change in accounts and notes receivable as reported in the statement of cash flows and the change in receivables based on the balance sheet. Do the same for long-term trade notes receivable. What are the likely reasons for the discrepancies?
2. Stanley Black & Decker reports a small change in cash relative to its operating cash flow for 2015. Explain why.
Stanley Black & Decker, Inc. Excerpts from Consolidated Balance Sheet as of End of Fiscal 2015 and 2014: End of Fiscal Year ($ in milik ons) 2015 2014 Assets Current assets Cash and cash equivalents Accounts and notes receivable, net $ 465.4 1,331.8 $ 496.6 1,396.7 Excerpt from Fiscal 2015 Income Statement: Provision for doubtful accounts 27.3 Operating Activities: Net earnings attributable to common shareowners Adjustments to reconcile net earnings to cash provided by operating activities: Depreciation and amortization of property, plant and equipment Amortization of intangibles Pretax (gain) loss on debt extinguishment $ 883.7 $ 760.9 $ 490.3 256.9 263.4 238.0 157.1 186.4 203.3 (0.1) 20.6 Asset impairments Stock-based compensation expense 9.8 63.1 40.9 67.9 57.1 66.4 Provision for doubtful accounts 29.5 22.1 13.7 Deferred tax (benefit) ex pense (1.3) 18.8 (135.7) 42.4 Other non-cash items 12.4 Changes in operating assets and liabilities: Accounts and notes receivable, net (41.3) (54.7) (175.9) (9.7) 7.7 81.6 11.3 Inventories (101.9) Accounts payable Deferred revenue 71.7 105.0 12.8 (1.1) Other current assets 19.8 25.8 13.5 Long-term trade notes receivable, net Other long-term assets Accrued expenses Defined benefit liabilities (12.6) (11.5) (59.0) (65.8) (13.0) 1,182.3 (13.2) 39.2 (11.8) 29.1 (156.0) (110.2) 59.7 (155.0) (58.5) 1,295.9 Other long-term liabilities Net cash provided by operating activities Investing Activities: Capital expenditures 152.6 868.0 (311.4) (291.0) (340.3) Proceeds from sales of assets 29.1 15.4 4.0 Busine ss acquisitions, net of cash acquired (Payments) proceeds from sales of businesses, net of cash sold (17.6) (3.2) (3.9) (61.4) (38. 1) (382.2) (933.9) 93.5 Proceeds (payments) for net investment hedge settlements Other 137.7 3.6 (42.8) (205.0) (25.3) (1,198.4) Net cash used in investing activities Financing Activities Payments on long-term debt Proceeds from debt issuance (16.1) (46.6) (302.2) 726.7 Net short-term borrowings (repayments) Stock purchase contract fees Purchase of common stock for treasury Proceeds from issuance of preferred stock Redemption of preferred stock for treasury (391.0) (16.4) (28.2) 1.2 388.7 (17.0) (649.8) (3.2) (39.2) 632.5 (632.5) Cash settlement on forward stock purchase contract Payment on forward share purchase contract Net premium paid on equity option Premium paid on debt extinguishment Non-controlling interest buyout Termination of interest rate swaps 18.8 (350.0) (83.2) (42.8) (33.5) (33.4) 71.3 Proceeds from issuances of common stock 163.5 154.6 Cash dividends on common stock (319.9) (4.0) (875.6 (132.9) (31.2) (321.3) (0.6) (766.2) (147.1) (312.7) Other 155.5 Net cash (used in) provided by financing activities Effect of exchange rate changes on cash (Decrease) increase in cash and cash equivaents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year (44.9) (219.8) 0.4 496.6 496.2 716.0 $ 465.4 $ 496.6 496.2
Step by Step Answer:
Requirement 1 The 2015 cash flow statement showed an increase in accounts and notes receivable of 41...View the full answer
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
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