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 $99.3 million in current taxes and had an interest expense of $49.3 million.

  

TIME MANUFACTURING Statement of Cash Flows ($ in millions)
Operations
Net income	$	186.0
Depreciation		95.3
Deferred taxes		20.3
Changes in assets and liabilities
Accounts receivable		–19.3
Inventories		23.3
Accounts payable		18.3
Accrued expenses		–10.3
Other		4.3
Total cash flow from operations	$	317.9
Investing activities
Acquisition of fixed assets	–$	202.0
Sale of fixed assets		24.3
Total cash flow from investing activities	–$	177.7
Financing activities
Retirement of long-term debt	–$	175.0
Proceeds from long-term debt sales		129.0
Dividends		–99.0
Repurchase of stock		–26.0
Proceeds from new stock issue		57.0
Total cash flow from financing activities	–$	114.0
Change in cash (on balance sheet)	$	26.2

1. Calculate the operating cash flow. (Do not round intermediate calculations. Enter your answer in millions, e.g., 10.2 million would be entered as 10.2. A negative answer should be indicated by a minus sign. Round your answer to one decimal place, e.g., 32.1.)

Operating cash flow             $    

2. Calculate the net capital spending. (Do not round intermediate calculations. Enter your answer in millions, e.g., 10.2 million would be entered as 10.2. A negative answer should be indicated by a minus sign. Round your answer to one decimal place, e.g., 32.1.)

Net capital spending             $    

3. Calculate the change in net working capital. (Do not round intermediate calculations. Enter your answer in millions, e.g., 10.2 million would be entered as 10.2. A negative answer should be indicated by a minus sign. Round your answer to one decimal place, e.g., 32.1.)

Change in net working capital             $  

4. Calculate the cash flow to creditors. (Do not round intermediate calculations. Enter your answer in millions, e.g., 10.2 million would be entered as 10.2. A negative answer should be indicated by a minus sign. Round your answer to one decimal place, e.g., 32.1.)

Cash flow to creditors             $  

5. Calculate the cash flow to stockholders. (Do not round intermediate calculations. Enter your answer in millions, e.g., 10 million would be entered as 10. A negative answer should be indicated by a minus sign. Round your answer to nearest whole dollar amount, e.g., 32.)

Cash flow to stockholders             $

Answer 1