You are researching Time Manufacturing and have found the following accounting s

Question

You are researching Time Manufacturing and have found the following accounting statement of cash flows for the most recent year. You also know that the company paid $99.5 million in current taxes and had an interest expense of $49.5 million.

Calculate the operating cash flow. (Do not round intermediate calculations. Enter your answers in millions, for e.g., 10.2 million would be entered as 10.2. Negative amounts should be indicated by a minus sign.)

Calculate the capital spending. (Do not round intermediate calculations. Enter your answers in millions, for e.g., 10.2 million would be entered as 10.2. Negative amounts should be indicated by a minus sign.)

Calculate the net working capital cash flow. (Do not round intermediate calculations. Enter your answers in millions, for e.g., 10.2 million would be entered as 10.2. Negative amounts should be indicated by a minus sign.)

Calculate the cash flow to creditors. (Do not round intermediate calculations. Enter your answers in millions, for e.g., 10.2 million would be entered as 10.2. Negative amounts should be indicated by a minus sign.)

Calculate the cash flow to stockholders. (Do not round intermediate calculations. Enter your answers in millions, for e.g., 10.2 million would be entered as 10.2. Negative amounts should be indicated by a minus sign.)

You are researching Time Manufacturing and have found the following accounting statement of cash flows for the most recent year. You also know that the company paid $99.5 million in current taxes and had an interest expense of $49.5 million.

Explanation / Answer

Answer

Answer 1

The operating cash flow : $ 320.5 million (Total cash flow from operations)

Answer 2

The capital spending : $ - 200 million ( Acquisition of fixed assets)

Answer 3

The net working capital cash flow = Accounts receivable ( –19.5 million) + Inventories (23.5 million) + Accounts payable (18.5 million) + Accrued expenses (–10.5 million) + other ( 4.5 million)

= 16.5 million

Answer 4

The cash flow to creditors = Retirement of long-term debt ( -177 million) + Proceeds from long-term debt sales ( 131 million) + Change in notes payable (7.5 million) + Interest expense ( - 49.5 million)

= - 88 million

Answer 5

The cash flow to stockholders = Dividends (- 101 million) + Repurchase of stock (–28 million) + Proceeds from new stock issue ( 59 million)

= -70 million

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