?Refer to the Sunbeam Corporation Statement of Cash Flows (Exhibit 3.23 on page 205) and review the change in one item for each of the key parts of the statement (Operations, Investing, Financing). Very briefly explain what may have occurred in one items from each of the key activities (Operating, Investing, and Financing) during Year 7.

For instance:

Operations / Increase (Decrease) in accounts payable- $(1.6)

Sunbeam paid off some outstanding obligation other than short term debt. For instance, it may have paid some outstanding utility bill.

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OPERATIONS Net income (loss) Depreciation and amortization Restructuring and asset impairment charges Deferred income taxes Other additions Other subtractions (Increase) Decrease in accounts receivable (Increase) Decrease in inventories Exhibit 3.23 Sunbeam Corporation Statement of Cash Flows (amounts in millions) (Problem 3.20) Year 7 (Increase) Decrease in prepayments Increase (Decrease) in accounts payable Increase (Decrease) in other current liabilities Cash Flow from Operations INVESTING Fixed assets acquired Sale of businesses Acquisitions of businesses Cash Flow from Investing FINANCING Increase (Decrease) in short-term borrowing Increase in long-term debt Issue of common stock Decrease in long-term debt Acquisition of common stock Dividends $109.4 38.6 578 13.7 (84.6) (84.6) (100.8) - (9.0) (1.6) 52.8 $ (8.3) $ (58.3) 91.0 $ $32.7 Other financing transactions Cash Flow from Financing Change in Cash Cash-Beginning of year Cash-End of Year $ Source: Sunbeam Corporation, Form 10-K for the Fiscal Year Ended 1997. - 5.0 - 26.6 (12.2) - (3.4) 5 $ 16.5 $ 40.9 11.5 524 Year 6 $(228.3) 474 283.7 (77.8) 46.2 (27.1) (13.8) (11.6) 2.7 14.7 (21.9) $ 14.2 $ (75.3) (.9) $ (76.2) $ 30.0 11.5 9.2 (1.8) - (3.3) (4) $ 45.2 $ (16.8) 28.3 $ 11.5 Year 5 $ 50.5 44.2 25.1 10.8 (21.7) (4.5) (4.9) (8.8) 9.2 (18.4) $81.5 $(140.1) 65.3 (33.0) $(107.4) $ 40.0 9.8 (5.4) (13.0) (3.3) (.2) $ 27.9 $ 2.0 26.3 $28.3 OPERATIONS Net income (loss) Depreciation and amortization Restructuring and asset impairment charges Deferred income taxes Other additions Other subtractions (Increase) Decrease in accounts receivable (Increase) Decrease in inventories Exhibit 3.23 Sunbeam Corporation Statement of Cash Flows (amounts in millions) (Problem 3.20) Year 7 (Increase) Decrease in prepayments Increase (Decrease) in accounts payable Increase (Decrease) in other current liabilities Cash Flow from Operations INVESTING Fixed assets acquired Sale of businesses Acquisitions of businesses Cash Flow from Investing FINANCING Increase (Decrease) in short-term borrowing Increase in long-term debt Issue of common stock Decrease in long-term debt Acquisition of common stock Dividends $109.4 38.6 578 13.7 (84.6) (84.6) (100.8) - (9.0) (1.6) 52.8 $ (8.3) $ (58.3) 91.0 $ $32.7 Other financing transactions Cash Flow from Financing Change in Cash Cash-Beginning of year Cash-End of Year $ Source: Sunbeam Corporation, Form 10-K for the Fiscal Year Ended 1997. - 5.0 - 26.6 (12.2) - (3.4) 5 $ 16.5 $ 40.9 11.5 524 Year 6 $(228.3) 474 283.7 (77.8) 46.2 (27.1) (13.8) (11.6) 2.7 14.7 (21.9) $ 14.2 $ (75.3) (.9) $ (76.2) $ 30.0 11.5 9.2 (1.8) - (3.3) (4) $ 45.2 $ (16.8) 28.3 $ 11.5 Year 5 $ 50.5 44.2 25.1 10.8 (21.7) (4.5) (4.9) (8.8) 9.2 (18.4) $81.5 $(140.1) 65.3 (33.0) $(107.4) $ 40.0 9.8 (5.4) (13.0) (3.3) (.2) $ 27.9 $ 2.0 26.3 $28.3

Answer rating: 100% (QA)

Cash Flow from Operations Increase in Inventory An increase in a companys inventory indicates that the company has purchased more goods than it has so... View the full answer