CAsh Flow analysis

profilevsfhzjy29
Home>Homework Answsers>Business & Finance homework help>Management homework help

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)20092008
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
    • 10 years ago
    • 10
    Report issue
    Answer(2)
    profile
    The Ultimate Professor
    5.0 (265)
    5.0 (44)
    Chat

    Purchase the answer to view it

    blurred-text
    NOT RATED
    • attachment
      cashflow_analysis.docx
    profile
    Engineer Maxwell
    3.8 (228)
    2.5 (2)
    Chat

    Purchase the answer to view it

    blurred-text
    NOT RATED
    • attachment
      techno_cash_flow.doc