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 $99.3 million in current taxes and had an interest expense of $49.3 million. Operations Net income Depreciation TIME MANUFACTURING Statement of Cash Flows (in millions) Deferred taxes Changes in assets and liabilities Accounts receivable Inventories Accounts payable Accrued expenses Other Total cash flow from operations Investing activities Acquisition of fixed assets Sale fixed assets Total cash flow from investing activities Financing activities Retirement of long-term debt Proceeds from long-term debt sales Dividends Repurchase of stock Proceeds from new stock issue Total cash flow from financing activities Change in cash (on balance sheet) $ 186.0 95.3 20.3 -19.3 23.3 18.3 -10.3 4.3 $317.9 -$ 202.0 24.3 -$177.7 -$ 175.0 132.0 -99.0 -26.0 57.0 -$111.0 $29.2

Cash Flows from (Used for) Operating Activities The income statement disclosed the following items for the year: Depreciation expense $44,100 Gain on disposal of equipment 25,740 Net income 339,800 The changes in the current asset and liability accounts for the year are as follows:   Increase(Decrease) Accounts receivable $6,870    Inventory (3,910)   Prepaid insurance (1,470)   Accounts payable (4,660)   Income taxes payable 1,470    Dividends payable 1,030    Question Content Area a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. blankStatement of Cash Flows (partial)  Cash flows from (used for) operating activities:       $- Select -   Adjustments to reconcile net income to net cash flows from (used for) operating activities:       - Select -…

) Provide an accurate, full and complete explanation and implication of the information presented in (mathematical forms) by explaining the significance of the cash flow statement The net income reported on the income statement for the current year was $128,000. Depreciation recorded on store equipment for the year amounted to $21,100. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:   End of Year Beginning of Year Cash $51,200   $47,100   Accounts receivable (net) 36,710   34,810   Merchandise inventory 50,120   52,990   Prepaid expenses 5,630   4,470   Accounts payable (merchandise creditors) 47,970   44,560   Wages payable 26,210   29,110

Selected data derived from the income statement and balance sheet of National Beverage Co. for a recent year are as follows: Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method for National Beverage Co.  Interpret your results in part (a).

Fitz Company reports the following information. Selected Annual Income Statement Data Net income Depreciation expense Amortization expense Gain on sale of plant assets Cash flows from operating activities Selected Year-End Balance Sheet Data $ 373,000 Accounts receivable decrease 49,400 Inventory decrease 8,300 Prepaid expenses increase 6,700 Accounts payable decrease Salaries payable increase Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31. Note: Amounts to be deducted should be indicated with a minus sign. Statement of Cash Flows (partial) Changes in current operating assets and liabilities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash $ 60,400 42,500 6,400 8,800 1,700 $

1. What is the cash flow statement using the indirect method?  2. What is the free cash flow for this year?

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Use the following information to compute net operating cash flow for a firm: Net income for the year is $43,900 Account receivable increased by $10,420 Inventory increased by $1,875 Depreciation expense for the year is $8,000 Account payable decreased by $5,782 Other current liabilities increased by $3,500 Taxes payable decreased by $1,970 Old equipment with a book value of $2,200 was sold for $1,325 Old appliances were sold for $24,000 at a gain of $4,800 A new machine was purchased for $10,000 1,000 shares of common stock were issued at par value of $10 each and sold at pay (for $10 each) Declared and paid dividends of $5,000 Reimbursed $7,000 of an outstanding loan’s capital

A liquid asset can be converted to cash quickly without significantly impacting the asset’s value. Which of the following asset classes is generally considered to be the most liquid? Accounts receivable   Cash   Inventories     The most recent data from the annual balance sheets of Fitcom Corporation and Zebra Paper Corporation are as follows: Balance Sheet December 31st31st (Millions of dollars)   Zebra Paper Corporation Fitcom Corporation   Zebra Paper Corporation Fitcom Corporation Assets     Liabilities     Current assets     Current liabilities     Cash $2,870 $1,845 Accounts payable $0 $0 Accounts receivable 1,050 675 Accruals 633 0 Inventories 3,080 1,980 Notes payable 3,586 3,375 Total current assets $7,000 $4,500 Total current liabilities $4,219 $3,375 Net fixed assets     Long-term bonds 5,156 4,125 Net plant and equipment 5,500 5,500 Total debt $9,375 $7,500       Common equity           Common stock $2,031 $1,625…