Question

You are researching Time Manufacturing and have found the following accounting statement of cash flows for the most recent year. You also know that the company paid $98.3 million in current taxes and had an interest expense of $48.3 million.

  

TIME MANUFACTURING Statement of Cash Flows ($ in millions)
Operations
Net income	$	176.0
Depreciation		94.3
Deferred taxes		19.3
Changes in assets and liabilities
Accounts receivable	–	18.3
Inventories		22.3
Accounts payable		17.3
Accrued expenses	–	9.3
Other		3.3
Total cash flow from operations	$	304.9
Investing activities
Acquisition of fixed assets	–$	212.0
Sale of fixed assets		23.3
Total cash flow from investing activities	–$	188.7
Financing activities
Retirement of long-term debt	–$	165.0
Proceeds from long-term debt sales		119.0
Dividends	–	89.0
Repurchase of stock	–	16.0
Proceeds from new stock issue		47.0
Total cash flow from financing activities	–$	104.0
Change in cash (on balance sheet)	$	12.2

1.	Calculate the operating cash flow. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in millions, for example, 10.2 million would be entered as 10.2.)

2.	Calculate the capital spending. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in millions, for example, 10.2 million would be entered as 10.2.)

3.	Calculate the net working capital cash flow. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in millions, for example, 10.2 million would be entered as 10.2.)

4.	Calculate the cash flow to creditors. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in millions, for example, 10.2 million would be entered as 10.2.)

5.	Calculate the cash flow to stockholders. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in millions, for example, 10.2 million would be entered as 10.2.)

Answer 1

AnL1Operalag Cau flow fixut calulate tBIT, ai below Net lncometCuent texeLt De tax tlnteral I96 +98,3+ 19,3+ 8,3 Naw Calculati Opexating f Oper atisj ERIT+epkuialin Cusret fers z3419 G. 3 98.3 z331..9 Maluea An (apital Spending Cashlo fom aisest om nveting actiuitiy at Acquiuien ixed aut Sall of fixed assel 2120 23 3 capital Aperduiy

3 Aet oykeng lapital cauh toco. Net ork capital CF fom Operatio f a Cath 12. 2 ACcount Rec. laventorie AecadtPuoble A Clud p 18.3 22.3 -17.3 9.3 - 3.3 - 3.14 Othese Net 4Calculate iauh tioa to ludi tor comLinanuaj activitie Jar Ceditox exepl Jntereit esp Retixemesk of Aeb Aebt Seswice Pyoceeds fom sale of .Teht-19.0 48.3 165.0 213. 3 9u.3 .cauh flow to ctackholders Aiuiclerd 89,0 Repuschas of ttork cauh to stockholds Poceed xom ne tock ue Cauh low to ctockhalde 16.0 58.0
Here is solution of your question. If doubt please discuss.All the best