OMM 622 Week 4 Discussion 2
amyjhon1990
OMM622Week4Discussion2.docxWeek 4 - Discussion 2
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Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your responses. Refer to the Discussion Forum Grading Rubric under the Settings icon above for guidance on how your discussion will be evaluated.
|
Analyzing the Statement of Cash Flows |
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 |
Respond to at least two of your classmates’ posts.
