Free Cash Flow Calculations
The data shown in the table below come from the annual reports of three local companies: Trimeris, Martin Marietta Materials and IBM. Units are shown. For each company:
- Compute the components of the cash flow diagram (i.e. Arrows 1-5). Show your work.
- Draw the cash flow diagram and label it with the arrows and cash flow dollar amounts.
- Write a brief paragraph interpreting your numbers.
Use the templates on the following pages (or a facsimile). Put your answer for each company on a separate page, one page per company. Neat, legible handwork is acceptable.
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Trimeris
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Martin Marietta
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IBM
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Year ending:
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31 Dec 02
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31 Dec 02
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31 Dec 02
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$ millions
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$ billions
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$ billions
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Income Statement
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Net Sales
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1.1
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1.7
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81.2
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- COGS(excluding Dep.)
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0.0
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1.3
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46.5
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- Depreciation
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0.8
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0.1
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4.4
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- SG&A Expense
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76.0
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0.1
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25.5
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= EBIT
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-75.7
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0.2
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4.8
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- Interest
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0.0
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0.0
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0.1
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- Taxes
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0.0
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0.1
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2.2
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= Net Income
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-75.7
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0.1
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2.5
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Dividends
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0.0
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0.0
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1.0
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Retained Earnings
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-75.7
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0.1
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1.5
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As of:
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31 Dec 02
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31 Dec 01
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31 Dec 02
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31 Dec 01
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31 Dec 02
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31 Dec 01
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Balance Sheet *
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Current Assets
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150.3
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75.2
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0.5
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0.5
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41.7
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42.5
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Net Fixed Assets
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4.2
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5.4
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1.8
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1.7
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54.8
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45.8
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Total Assets
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154.5
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80.6
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2.3
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2.2
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96.5
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88.3
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Current Liabilities
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21.9
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23.5
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0.2
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0.2
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34.6
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35.1
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Long-Term Debt
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2.5
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3.6
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1.0
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1.0
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39.1
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29.4
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Com Stk & PIC
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394.7
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242.4
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0.5
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0.5
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30.0
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30.0
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- Treasury Stock
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0.0
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0.0
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0.0
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0.0
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18.8
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16.3
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Acc. Retain. Earn
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-264.6
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-188.9
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0.6
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0.5
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11.6
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10.1
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Total Liab. & SE
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154.5
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80.6
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2.3
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2.2
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96.5
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88.3
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Attachment:- Assignment File.rar