The statement of cash flows for IAC InterActive Corp., a diversified Internet company providing services through the
Question:
a. Calculate the free cash flow.
b. Explain why the cash flow from operations is nearly 600% greater than the net income.
c. Identify the major sources and uses of cash andinterpret.
Transcribed Image Text:
AC InterActive Corp. Statement of Cash Flows (annotated) For the Year Ended December 31, 2004 (in millions) Cash flows from operating activities: Net income Goodwill impairment Depreciation Amortization Other Net changes in current assets and liabilities 185,761 184,780 526,971 330,507 (111,591) 156,800 $1,273,228 Net cash provided by operating activities Cash flows from investing activities: Acquisitions Capital expenditures Investments in securities, net $(486,033) (223,787) (43,374) $(753.194) Net cash used in investing activities Cash flows from financing activities Borrowings, net Treasury stock purchases Proceeds from issuing common stock Preferred dividends Other, net $19,039 (430,295) 147,283 (13,053) 17,380 $ (259,646) S 260,388 Net cash used in financing activities Net increase in cash flows from continuing operations
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 58% (17 reviews)
a Free cash flow measures the amount of cash flow available for expansion debt reduction treasury st...View the full answer
Answered By
Omar ELmoursi
I'm Omar, I have Bachelor degree in Business and Finance, My unique approach is to help students with questions and assignments, I can teach Business, Math, Accounting, Managerial Accounting, Economy, Human resources management, organizational behavior, project management, I have experience dealing with different types of students and teach them how to deal with different types of exercises.
5.00+
4+ Reviews
10+ Question Solved
Related Book For
Financial Accounting An Integrated Statements Approach
ISBN: 978-0324312119
2nd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Question Posted:
Students also viewed these Managerial Accounting questions
-
The statement of cash flows for the year ended March 1.2008 (fiscal 2007), of Bed, Bath and Beyond. Inc. (BBB), a U.S. home products retailer, appears in Exhibit 1.12. BBB reports all amounts in...
-
The statement of cash flows for the year ended December 31, 2013, for Bronco Metals is presented below. Required: Prepare the statement of cash flows assuming that Bronco prepares its financial...
-
The statement of cash flows for the year ended December 31, 2014, and other data for Bradley Corporation are shown below: Additional data: a. Bradleys Dividends receivable account decreased by $2,000...
-
Listing 8.4 checks whether a solution is valid by checking whether every number is valid in the board. Rewrite the program by checking whether every row, every column, and every small box has the...
-
1. Who's case is justified-Mr. Davis or Mr. Bracket? Explain. 2. What other issues should be considered? 3. Would you present these data in court? Why or why not? 4. What are your final...
-
Hammond Manufacturing Inc. was legally incorporated on January 2, 2023. Its articles of incorporation granted it the right to issue an unlimited number of common shares and 100,000 shares of $14.40...
-
What is induced AOA?
-
Greenwood Corporation earned net income of $85,000 during the year ended December 31, 2012. On December 15, Greenwood declared the annual cash dividend on its 8% preferred stock (20,000 shares with...
-
Calculate the Present Value of the Total Cost of Risk for the next two years in the following scenario. Fast Delivery is a regional transport service. The Risk Manager of Fast Delivery considers...
-
The spring of constant k = 200 N/ m is attached to both the support and the 2-kg cylinder, which slides freely on the horizontal guide. If a constant 10-N force is applied to the cylinder at time t =...
-
The average accounts receivable, inventory, and accounts payable for Molson Coors Brewing Co., Anheuser-Busch Co., and Boston Beer Company are shown below for a recent fiscal year (in thousands)....
-
The sales and statement of cash flows for Intel Corp., National Semiconductor, and Texas Instruments for a recent fiscal year are shown on the following page (in millions). These three companies are...
-
Ltd manufactures a range of products which are sold to a limited number of wholesale outlets. Four of these products are manufactured in a particular department on common equipment. No other...
-
What is the work of consent? How does consent, through the actions of government determine how a person's right to property can be limited? Based on Locke's ideas, under what system would the...
-
Suppose you had a $ 2 5 , 0 0 0 capital gain in 2 0 1 9 , a $ 4 0 , 0 0 0 loss in 2 0 2 0 , a 3 0 , 0 0 0 gain in 2 0 2 1 , and a $ 5 , 0 0 0 loss in 2 0 2 2 . How much loss can you carry forward to...
-
O 324 Part Two Information Technology Infrastructure INTERACTIVE SESSION MANAGEMENT How Secure Is the Cloud? Over the last several years, many companies have altered their IT strategies to shift an...
-
7. A frictionless disc of mass 0.50 kg is moving in a straight line across an air table at a speed of 2.4 m/s [Right] when it bumps into an elastic band stretched between two fixed posts. If the...
-
Electromagnetic induction The purpose of this exercise is to determine the direction of the induced current in a circular loop by two different methods. Consider a circular conducting loop of radius...
-
Neutrality of information in the financial statements most closely contributes to which qualitative characteristic? A. Relevance. B. Understandability. C. Faithful representation.
-
Use the T account for Cash below to record the portion of each of the following transactions, if any that affect cash. How do these transactions affect the companys liquidity? Jan. 2 Provided...
-
Compute the given partial derivatives. f(x,y) = 3xy + 4xy - 7xys, fx(1,2)
-
How would you respond to a horizontal analysis that showed an expense increasing by over 80%?
-
How would the current and quick ratios of a service business compare?
-
For Gray Corporation, the working capital at the end of the current year is $10,000 more than the working capital at the end of the preceding year, reported as follows: Has the current position...
-
Salmon ASA has just issued a callable seven-year, 8% coupon bond with coupon payable annually. The bond can be called at par in two years or anytime thereafter on a coupon payment date. It has a...
-
Lamda corporation wants to acquire another company within its industry for $100m and it expects the acquisition to contribute to its free cash flow by $5m the first year, and this contribution is...
-
Dewan INC. has several divisions, each with a manager responsible for the operations of the division. Each division of Dewan controls product design, sales, pricing, operating costs, and profits.....
Study smarter with the SolutionInn App