Time Warner Inc. is a leading media and entertainment company with businesses in television networks, filmed entertainment,
Question:
Time Warner Inc. is a leading media and entertainment company with businesses in television networks, filmed entertainment, and publishing. The company’s 2008 annual report contained the following information (dollars in millions):
Net loss ................. $(13,402)
Depreciation, amortization, and impairments .... 34,790
Decrease in receivables ............. 1,245
Increase in inventories ............ 5,766
Decrease in accounts payable .......... 445
Additions to equipment ............. 4,377
Required:
1. Based on this information, compute cash flow from operating activities using the indirect method.
2. What were the major reasons that Time Warner was able to report a net loss but positive cash flow from operations? Why are the reasons for the difference between cash flow from operations and net income important to financial analysts?
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Step by Step Answer:
Req 1 Cash flows from operating activities x indirect method Net loss 13402 Depreciation ...View the full answer
