3. (Analyzing the cash flow statement) The cash flow statements for retailing gi

Question

3. (Analyzing the cash flow statement) The cash flow statements for retailing giant BigBox Inc spanning the period 2010 – 2013 are found here:

In Millions of U. S. Dollars

Answer the following questions using the information found in these statements:

A. Did BigBox generate positive cash flow from its operations?

                a. BigBox has generated positive cash flow from its operations during the years 2010, 2011,                         2012, and 2013

                b. BigBox has generated positive cash flow from its operations during the years 2010, 2012, and 2013

                c. BigBox has generated positive cash flow from its operations during the years 2011, 2012, and 2013

                d. BigBox has generated positive cash flow from its operations during the years 2010, 2011, , and 2013

In Millions of U. S. Dollars

12 Months Ending 12/31/2013 12/31/2012 12/31/2011 12/31/2010 Net Income $13,090 $12,060 $11,030 $10,060 Depreciation Expense 6,450 6,260 5,020 4,030 Changes in Working Capital 1,240 2,340 2,420 980 Cash from Operating Activities $20,780 $20,660 $18,470 $15,070 Capital Expenditures $(16,050) $(14,510) $(13,990) $(12,270) Cash from Investing Activities $(16,050) $(14,510) $(13,990) $(12,270) Interest and Financing Cash Flow Items $(360) $(270) $(330) $80 Total Cash Dividends Paid (3,590) (2,830) (2,550) (2,170) Issuance (Retirement) of Stock (8,050) (1,500) (3,550) (4,520) Issuance (Retirement) of Debt 1,550 (110) 4,020 4,100 Cash From Financing Activities $(10,450) $(4,710) $(2,410) $(2,510) Net Change in Cash $(5,720) $1,440 $2,070 $290

Explanation / Answer

BigBox has genrated positive cash flow from its Operations during all the Years. (2010, 2011, 2012, & 2013)

So the right answer is a.

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