OMM 622 DeVry University Cash Flow Questions

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avynzz2019

Business Finance

OMM 622

DeVry University

OMM

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The Statement of Cash Flows  350 words

Referencing this week’s readings and lecture, describe the following terms as they relate to the statement of cash flows: cash, operating activities, investing activities, and financing activities. What can creditors, investors, and other users glean from an analysis of the statement of cash flows?

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Analyzing the Statement of Cash Flows 350 words

Using the table below, explain the difference between net income and cash flow from operating activities for Techno in 2009 and analyze their cash flows for 2008 and 2009.

(in thousands)20092008Net income$ 316,354$  242,329Noncash charges (credits) to incomeDepreciation and amortization     68,156      62,591Deferred taxes15,39422,814$ 399,904$  327,734Cash Provided (Used) by Operating Assets and Liabilities:Receivables  (288,174)     (49,704)Inventories  (159,419)   (145,554)Other current assets        (1,470)        3,832Accounts payable, accrued liabilities73,68441,079Total Cash Provided by Operations$ 24,525$  177,387Investment activitiesAdditions to plant and equipment   (94,1760)     (93,136)Other investment activities14,408(34,771)Net investment activities  ($ 79,768)($ 127,907)Financing activitiesPurchases of treasury stock     (45,854)     (39,267)Dividends paid     (49,290)     (22,523)Net changes in short-term borrowing    125,248      45,067Additions to long-term borrowings    135,249        4,610Repayments of long-term borrowings   (250,564)Net financing activities$  165,353($ 262,677)Increase (decrease) in cash$  110,110($ 213,197)Beginning cash balance78,114291,311Ending cash balance$  188,224$78,114  

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Attached.

Running head: STATEMENT OF CASH FLOWS

STATEMENT OF CASH FLOWS

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STATEMENT OF CASH FLOWS

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Statement of cash flows

This is the financial statement that shows average data concerning cash inflows a firm
acquires from the day to day activities and external sources. It also shows the cash outflows
activities which the business pays for and the investments made by the firm during a specific
period. Cash accounting is a form of cash flow statement accounting and is a critical tool for
businesses, investors and analysts. Cash has different activities such as operations activities,
investing activities and financing activities.
Operating activities consists of transactions that arise from business activities. It also
includes activities that generate revenue in a business. Indicating the abilities of a business to
generate cash tells us how much cash was generated and is usually recorded in quarterly or
annually reports. In operating activitie...


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