Compute the operating cash cycle for FGL for the years 2011, 2012, and 2013. Outline and discuss
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Compute the operating cash cycle for FGL for the
years 2011, 2012, and 2013. Outline and discuss the
implications of this computation.
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Table 4. Statement of Cash Flows (in thousands of Australian dollars) 2010 2011 2012 2013 Cash Flows from Operating Activities Receipts from customers 245,418 431,399 744,720 1,176,226 Payments to suppliers and employees (215,240) |373,464) (631,924| 1,113,073) Other revenue 943 638 Income taxes paid (670) |20,390) (21,537) 145,231) Net cash flows provided by operating activities $30,451 $38,183 $91,259 $17,922 Cash Flows from Investing Activities Payments for property, plant, and equipment (8,371| |11,257) (39,737| (19,521) Proceeds from disposal of property, plan, and equipment 224 6,485 500 869 Interest received 1,023 3,079 5,649 7,379 Tem deposits matured/expired (86,7601 73,545 Amount received from joint ventures 130 Acquisition of investments or associates 1205) (3,439| Payment of deferred consideration |19,798) Net cash flows provided by/used in financing activities (7,124) (1,898) (123,787) $42,604 Cash Flows from Financing Activities Proceeds from issue of share capital 18,907 1,458 1,136 Proceeds from borrowings 23,011 9,152 Repayment of borrowings (4,131| 13,464) (4,698) 19,654) Interest paid (271) 1658) (2,850) 14,877) Dividends paid (3,4191 17,257) (11,265) |15,510) Net cash provided by/used in financing activities $11,086 S(9,921) $5,334 S120,889) Net increase/decrease in cash and equivalents 34,413 26,364 (27,194) 39,637 Cash and equivalents at beginning of year 17.440 51,921 78.285 51,091 Effect of exchange rate changes 67 Cash and equivalents at end of year $57,920 $78,285 $51,091 $90,728 Table 5. Reconciliation (in thousands of Australian dollars) 2010 2011 2012 2013 Profit for the year after tax S29,450 $38,832 S49,302 $62,919 Depreciation and amortization 3,217 5,159 16,292 21,361 Other noncash diferences 907 1,815) (43,488) 28,409 Decreasa/increase in trade debtors and receivables (25,202) (7,380) (154,393) 119,258 Decreaseyincrease in inventaries and WIP (9,696) |15,000| 18,291 139, 160) Decrease/increase in ather current assets (104) 671 (913) 927 Increase in deferred tax assets (779) (215) (2.231) 14,851) Decrease/increase in trade and payables 21,881 19,877 203,417 (37,123) Decrease/increase in current tax liabilities 10,649 12,311) 1,980 |10,903) Decreaseyincrease in deferred tax liabilities 64 2,742 1,727| Increase in other provisions 64 365 260 86 Net cash inflow from operating activities S30,451 $38,183 $91,259 $17,922 Table 4. Statement of Cash Flows (in thousands of Australian dollars) 2010 2011 2012 2013 Cash Flows from Operating Activities Receipts from customers 245,418 431,399 744,720 1,176,226 Payments to suppliers and employees (215,240) |373,464) (631,924| 1,113,073) Other revenue 943 638 Income taxes paid (670) |20,390) (21,537) 145,231) Net cash flows provided by operating activities $30,451 $38,183 $91,259 $17,922 Cash Flows from Investing Activities Payments for property, plant, and equipment (8,371| |11,257) (39,737| (19,521) Proceeds from disposal of property, plan, and equipment 224 6,485 500 869 Interest received 1,023 3,079 5,649 7,379 Tem deposits matured/expired (86,7601 73,545 Amount received from joint ventures 130 Acquisition of investments or associates 1205) (3,439| Payment of deferred consideration |19,798) Net cash flows provided by/used in financing activities (7,124) (1,898) (123,787) $42,604 Cash Flows from Financing Activities Proceeds from issue of share capital 18,907 1,458 1,136 Proceeds from borrowings 23,011 9,152 Repayment of borrowings (4,131| 13,464) (4,698) 19,654) Interest paid (271) 1658) (2,850) 14,877) Dividends paid (3,4191 17,257) (11,265) |15,510) Net cash provided by/used in financing activities $11,086 S(9,921) $5,334 S120,889) Net increase/decrease in cash and equivalents 34,413 26,364 (27,194) 39,637 Cash and equivalents at beginning of year 17.440 51,921 78.285 51,091 Effect of exchange rate changes 67 Cash and equivalents at end of year $57,920 $78,285 $51,091 $90,728 Table 5. Reconciliation (in thousands of Australian dollars) 2010 2011 2012 2013 Profit for the year after tax S29,450 $38,832 S49,302 $62,919 Depreciation and amortization 3,217 5,159 16,292 21,361 Other noncash diferences 907 1,815) (43,488) 28,409 Decreasa/increase in trade debtors and receivables (25,202) (7,380) (154,393) 119,258 Decreaseyincrease in inventaries and WIP (9,696) |15,000| 18,291 139, 160) Decrease/increase in ather current assets (104) 671 (913) 927 Increase in deferred tax assets (779) (215) (2.231) 14,851) Decrease/increase in trade and payables 21,881 19,877 203,417 (37,123) Decrease/increase in current tax liabilities 10,649 12,311) 1,980 |10,903) Decreaseyincrease in deferred tax liabilities 64 2,742 1,727| Increase in other provisions 64 365 260 86 Net cash inflow from operating activities S30,451 $38,183 $91,259 $17,922
Expert Answer:
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Sr No Particulars 2013 2012 2011 2010 Current Assets 331316 334293 1590... View the full answer
Related Book For
Multinational Business Finance
ISBN: 978-0132743464
13th edition
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
Posted Date:
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