Discussions
Discussion 1
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?
Discussion 2
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)
|
2009
|
2008
|
|
Net income
|
$ 316,354
|
$ 242,329
|
|
Noncash charges (credits) to income
|
|
|
|
Depreciation and amortization
|
68,156
|
62,591
|
|
Deferred taxes
|
15,394
|
22,814
|
|
|
$ 399,904
|
$ 327,734
|
|
Cash Provided (Used) by Operating Assets and Liabilities:
|
|
|
|
Receivables
|
(288,174)
|
(49,704)
|
|
Inventories
|
(159,419)
|
(145,554)
|
|
Other current assets
|
(1,470)
|
3,832
|
|
Accounts payable, accrued liabilities
|
73,684
|
41,079
|
|
Total Cash Provided by Operations
|
$ 24,525
|
$ 177,387
|
|
Investment activities
|
|
|
|
Additions to plant and equipment
|
(94,1760)
|
(93,136)
|
|
Other investment activities
|
14,408
|
(34,771)
|
|
Net investment activities
|
($ 79,768)
|
($ 127,907)
|
|
Financing activities
|
|
|
|
Purchases of treasury stock
|
(45,854)
|
(39,267)
|
|
Dividends paid
|
(49,290)
|
(22,523)
|
|
Net changes in short-term borrowing
|
125,248
|
45,067
|
|
Additions to long-term borrowings
|
135,249
|
4,610
|
|
Repayments of long-term borrowings
|
|
(250,564)
|
|
Net financing activities
|
$ 165,353
|
($ 262,677)
|
|
Increase (decrease) in cash
|
$ 110,110
|
($ 213,197)
|
|
Beginning cash balance
|
78,114
|
291,311
|
|
Ending cash balance
|
$ 188,224
|
$ 78,114
|