Question

CASE 7-3 Analysis of a Statement of Cash Flows Ohin a copy of a large corporation's annual report, and refer tod Was the cash from operations more than or less than dividends the statement of cash flows. during the period covered by the statement and the previous period? Required: e. What were the firm's major investing activities during the a. Tid the company use the direct method or the indirect method period covered by the statement and the previous period? Were of disclosing cash flows? cash flows from operations more or less than cash flows from h Comment on the relationship between cash flows from oper investing activities for the company in question? utions and net income for the year of the statement and the 1. What were the most significant cash flows from financing activ previous year. ities during the year of the statement and the previous year? What were the most significa es caseros para Review the emen discussid ysis sections of the activities during the period covered by the statement? What financial statements to determine if my aditional informatie percentage of total cash inflows do these sources represent? is available concerning the company's investment or financing Answer the same question for the previous period. strategy

Answer 1

Company flow, follow anotat direct method for preparing Cain Shows, Net Income shout the. Income for a period lutereas Coun flow from operation de sa shows. in part. Net Carn Elow from operating Activities is Calculated as the sum of net income, taking adjustment for non cain expenses and changes in. working capital main sources of Cash Esom operating activities. during the period is can collected from sales efter sate payment of costs of goods, taxes, Intrent on loans. letic and dame was for the previous period. i Approx percentage of Coin flow from operation between tatul Coun nom Ingrow i 43% and precious year its was 38% appoox . o @ Dividend Income un was flow from operation in previous year. een Current the them the Cain year as well as

I o Cirms mazos Inverting Activities us purchase of property plant & Equipment and Intangible sue to Innatment in Subridianies and Truits, punchane y other Investments and proceeds of sale of financial Aness - Approx all the mayor Inverting - Activity is same in previous year of firm. Significant can flow foom financing Activity a are proceeds from borrowing non-current, Barrowing Current and Intrest paid son But in previous year all thing enere same. Except Repayment of ron current bonoviing is mign (significant) . a) a The company Analyes section of repart souls that the company has accounted or its Invatments in subriciaries arociate and joint venture at cant les impaniment loy any ly any) .