Problem 2-25 Cash Flows PDF
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This document contains a problem 2-25 cash flows, an accounting statement of cash flows for a company called Time Manufacturing. The problem includes questions related to operating cash flow, net capital spending, change in net working capital, cash flow to creditors and cash flow to stockholders, along with calculations required.
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1/30/25, 11:05 PM Assignment Print View 2. Award: 20.00 points Problem 2-25 Cash Flows You are researching Time Manufacturing and have found the following accounting statement of cash...
1/30/25, 11:05 PM Assignment Print View 2. Award: 20.00 points Problem 2-25 Cash Flows 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 million in current taxes and had an interest expense of $49 million. TIME MANUFACTURING Statement of Cash Flows (in millions) Operations Net income $ 183.0 Depreciation 95.0 Deferred taxes 20.0 Changes in assets and liabilities Accounts receivable −19.0 Inventories 23.0 Accounts payable 18.0 Accrued expenses −10.0 Other 4.0 Total cash flow from operations $ 314.0 Investing activities Acquisition of fixed assets −$ 205.0 Sale of fixed assets 24.0 Total cash flow from investing activities −$ 181.0 Financing activities Retirement of long-term debt −$ 172.0 Proceeds from long-term debt sales 126.0 Dividends −96.0 Repurchase of stock −23.0 Proceeds from new stock issue 54.0 Total cash flow from financing activities −$ 111.0 Change in cash (on balance sheet) $ 22.0 a. Calculate the operating cash flow. b. Calculate the net capital spending. c. Calculate the change in net working capital. d. Calculate the cash flow to creditors. e. Calculate the cash flow to stockholders. Note: For all requirements, a negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in millions, rounded to 1 decimal place, e.g., 10.2 million would be entered as 10.2. https://ezto.mheducation.com/api/caa/activity/C15Print?jwt=eyJhbGciOiJSUzI1NiJ9.eyJlbnZpcm9ubWVudCI6InByb2QiLCJpc3MiOiJlenQiLCJwcmludF… 1/2 1/30/25, 11:05 PM Assignment Print View a. Operating cash flow b. Net capital spending c. Change in net working capital d. Cash flow to creditors e. Cash flow to stockholders References Worksheet Difficulty: 3 Challenge Problem 2-25 Section: 2.5 Cash Cash Flows Flow of the Firm https://ezto.mheducation.com/api/caa/activity/C15Print?jwt=eyJhbGciOiJSUzI1NiJ9.eyJlbnZpcm9ubWVudCI6InByb2QiLCJpc3MiOiJlenQiLCJwcmludF… 2/2
