Exhibits 1, 2, and 3 contain cash-flow statements from three companies. Each cash- flowstatement has three years of data. Examine the contents of these cash-flow statements carefully.Answer the following questions about each of the three cash-flow statements.I. For each of the years on the Statement of Cash Flows
Questions: Exhibits 1, 2, and 3 contain cash-flow statements from three companies. Each cash- flowstatement has three years of data. Examine the contents of these cash-flow statements carefully.Answer the following questions about each of the three cash-flow statements.I. For each of the years on the Statement of
Alpha Corporation - Consolidated Statement of Cash Flows
Year Ended | June 30, 1991 | June 30, 1990 | June 30, 1989 |
---|---|---|---|
Operating Activities | |||
Loss from continuing operations | $(377.9) | $(623.5) | $(320.6) |
$168.4 | $220.1 | $263.4 | |
Amortization of capitalized software | $41.4 | $58.2 | $39.1 |
Gain from sale of investments and other assets | $(16.6) | $(119.0) | - |
Restructuring and other unusual items, net | $135.5 | $384.1 | $125.3 |
Changes in other accounts affecting operations | |||
$160.8 | $73.4 | $(45.2) | |
Inventory | $80.2 | $100.9 | $(3.0) |
Other current assets | $17.0 | $(1.2) | $(13.0) |
Accounts payable and other current liabilities | $(91.3) | $(21.3) | $41.0 |
Other | $2.8 | $14.1 | $(10.5) |
Net cash provided by continuing operations | $120.3 | $85.8 | $76.5 |
Net cash provided by (used in) discontinued operations | $4.9 | $3.5 | $(29.7) |
Net cash provided by operating activities | $125.2 | $89.3 | $46.8 |
Investing Activities | |||
Investment in depreciable assets | $(129.7) | $(174.4) | $(303.6) |
Proceeds from disposal of depreciable and other assets | $157.0 | $242.0 | $94.1 |
Proceeds from the sale of discontinued operations | $25.3 | $407.3 | - |
Investment in capitalized software | $(27.8) | $(43.1) | $(59.5) |
Other | $(6.0) | $(13.0) | $14.2 |
Net cash provided by (used in) investing activities | $18.8 | $418.8 | $(254.8) |
Financing Activities | |||
(Decrease) increase in short-term borrowings | $(2.6) | $(222.6) | $139.8 |
Proceeds from long-term debt | $44.4 | $167.7 | $305.0 |
Payments of long-term debt | $(126.5) | $(544.8) | $(91.7) |
Proceeds from sale of Class B common stock | $5.0 | $8.7 | $17.5 |
Purchase of |
$(0.3) | $(0.6) | $(18.8) |
Dividends paid | - | $(7.2) | $(26.0) |
Net cash provided by (used in) financing activities | $(80.0) | $(598.8) | $325.8 |
Effect of changes in foreign exchange rates | $0.1 | $1.1 | $(3.9) |
Increase (decrease) in cash equivalents | $64.1 | $(89.6) | $113.9 |
Cash and equivalents at beginning of year | $169.1 | $258.7 | $144.8 |
Cash and equivalents at end of year | $233.2 | $169.1 | $258.7 |
Note: Figures are in millions. Parentheses indicate negative values.
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