Create a cash flow statement for global corporation for

Question

Cash Flow Statement

Create a Cash Flow Statement for Global Corporation for 2007. The Balance Sheet and Income Statements are provided below. Supplemental information:

• Additions to PP&E for 2007 is $33.4 million
• Dividends for 2007 were $1 million
• Ignore Retained Earnings Calculation: Net Income and Dividends are provided.

o No change in common stock
o S/E increased $1 million = ΔR/E (NI-Div)

Table: Global Corporation Balance Sheet for 2007 and 2006

GLOBAL CORPORATION Balance Sheet Year ended December 31 (in $ millions)
Assets	2007	2006	Liabilities and Stockholders' Equity	2007	2006
Current Assets			Current Liabilities
Cash	23.2	20.5	Accounts payable	29.2	26.5
Accounts receivable	18.5	13.2	Notes payable/short-term debt	5.5	3.2
Inventories	15.3	14.3
Total current assets	57.0	48.0	Total current liabilities	34.7	29.7
Long-Term Assets			Long-Term Liabilities
Net property, plant, and equipment	113.1	80.9	Long-term debt	113.2	78.0
Total long-term assets	113.1	80.9	Total long-term liabilities	113.2	78.0
			Total Liabilities	147.9	107.7
			Stockholders' Equity	22.2	21.2
Total Assets	170.1	128.9	Total Liabilities and Stockholders' Equity	170.1	128.9

Table: Global Corporation Income Statement Sheet for 2007 and 2006

GLOBAL CORPORATION Income Statement Year ended December 31 (in $ millions)
	2007	2006
Total sales	186.7	176.1
Cost of sales	-153.4	-147.3
Gross Profit	33.3	28.8
Selling, general, and administrative expenses	-13.5	-13
Research and development	-8.2	-7.6
Depreciation and amortization	-1.2	-1.1
Operating Income	10.4	7.1
Other income	-	-
Earnings Before Interest and Taxes (EBIT)	10.4	7.1
Interest income (expense)	-7.7	-4.6
Pretax Income	2.7	2.5
Taxes	-0.7	-0.6
Net Income	2.0	1.9
Earnings per share:	$0.56	$0.53
Diluted earnings per share:	$0.53	$0.50