cash flow hbs

cash flow hbs

  • Submitted By: madsf
  • Date Submitted: 05/05/2015 11:56 AM
  • Category: Business
  • Words: 1525
  • Page: 7

´╗┐Statement of Cash Flows: Three Examples


Alpha

I. 1989

1. Cash sources: proceeds from long-term debt, short-term borrowings
Cash uses: investment in depreciable assets, long-term debt payments
2. Cash from operations was greater than net income due to D&A (value subtracted from net income, not cash)
3. No ($46.8m vs. $303.6m)
4. Cash flow from operations covered dividends ($26.0m) not capex ($303.6)
5. N/A
6. Capex was paid with proceeds from long-term debt and short-term borrowings
7. Net working capital accounts were primarily users of cash
8. Net income, D&A, restructuring, investments in depreciable assets, capex, short-term borrowings, long-term debt

1990

1. Cash sources: restructuring and unusual items, proceeds from sale of discontinued operations
Cash uses: short-term borrowings, long-term debt payments
2. Cash from operations was greater than net income due to D&A (value subtracted from net income, not cash), restructuring and other unusual items, and decreasing assets (accounts receivable, inventory)
3. No ($89.3m vs. $174.4m)
4. Cash flow from operations covered dividends ($7.2m) not capex ($174.4m)
5. N/A
6. Capex was paid with proceeds from sale of discontinued operations and restructuring and unusual items
7. Net working capital accounts were primarily sources of cash
8. Net income, D&A, restructuring, net working capital, investments in depreciable assets, capex, short-term borrowings, long-term debt

1991

1. Cash sources: restructuring and other unusual items, accounts receivable, proceeds from disposal of depreciable/other assets
Cash uses: investment in depreciable assets, long-term debt payments
2. Cash from operations was greater than net income due to D&A (value subtracted from net income, not cash), restructuring and other unusual items, and decreasing assets (accounts receivable, inventory)
3. No ($125.2m vs. $129.7m)
4. Cash flow from operations covered dividends ($0m) not capex ($129.7)
5. N/A...

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