Manufacturing Cash Flow Analysis

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Questions and Answers

What is the total amount of cash paid for operating activities?

$198 million (correct)

$100 million

$149 million

$247 million

Which of the following is NOT a direct cash flow from operating activities?

Cash paid to suppliers

Cash received from customers

Payment of taxes

Payment of interest (correct)

What is the net income before interest and taxes for Time Manufacturing?

$149 million

$247 million

Cannot be determined from the information provided (correct)

$198 million

What is the total amount of cash flow from investing activities?

Cannot be determined from the information provided (B) Signup and view all the answers

What is the total amount of cash paid for taxes?

$99 million (A) Signup and view all the answers

What method is typically used to calculate operating cash flow?

Adding back depreciation and subtracting taxes from revenues (B) Signup and view all the answers

What does net capital spending reflect?

Investments in fixed assets minus sales of fixed assets (C) Signup and view all the answers

How is the change in net working capital calculated?

By subtracting current liabilities from current assets (C) Signup and view all the answers

What does cash flow to creditors indicate?

The net cash outflow from servicing debt, including interest payments (D) Signup and view all the answers

Cash flow to stockholders is calculated as which of the following?

Dividends paid minus new stock issued (C) Signup and view all the answers

What is the total cash flow from operations?

$314.0 million (C) Signup and view all the answers

Which activity resulted in the largest cash outflow?

Acquisition of fixed assets (B) Signup and view all the answers

What was the cash flow from investing activities?

−$181.0 million (B) Signup and view all the answers

Which of the following accounts had a negative change affecting cash flow?

Accrued expenses (C), Accounts receivable (D) Signup and view all the answers

What was the overall change in cash as stated in the cash flow statement?

$22.0 million (D) Signup and view all the answers

Which cash flow activity was a source of cash, contributing positively?

Proceeds from long-term debt sales (B) Signup and view all the answers

What was the net cash flow from financing activities?

−$111.0 million (D) Signup and view all the answers

What is the total amount of dividends paid?

$96.0 million (C) Signup and view all the answers

Study Notes

Time Manufacturing Cash Flow Statement Analysis

Net Income: $183.0 million
Depreciation: $95.0 million
Deferred Taxes: $20.0 million
Changes in Assets and Liabilities:
- Accounts Receivable: -$19.0 million
- Inventories: $23.0 million
- Accounts Payable: $18.0 million
- Accrued Expenses: -$10.0 million
- Other: $4.0 million
Total Cash Flow from Operations: $314.0 million
Investing Activities:
- Acquisition of Fixed Assets: -$205.0 million
- Sale of Fixed Assets: $24.0 million
- Total Cash Flow from Investing Activities: -$181.0 million
Financing Activities:
- Retirement of Long-Term Debt: -$172.0 million
- Proceeds from Long-Term Debt Sales: $126.0 million
- Dividends: -$96.0 million
- Repurchase of Stock: -$23.0 million
- Proceeds from New Stock Issue: $54.0 million
- Total Cash Flow from Financing Activities: -$111.0 million
Change in Cash: $22.0 million
Current Taxes Paid: $99 million
Interest Expense: $49 million

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Description

This quiz focuses on analyzing the cash flow statement for Time Manufacturing. It covers the key components such as cash flow from operations, investing activities, and financing activities using real financial figures. Test your understanding of financial statement analysis and its implications for business operations.