Question

How do you reformulate the cash flows statement?

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (IN MILLIONS) 2015 2016 2017 2018 2019 $ 438.0 $ 733.2 $ 1.274.0 $ 883.9 $ 824.9 $ 457.8 $ 499.2 $ 533.2 $ 552.1 $ 577.2 $ 102.1 $ 109.6 $ 109.7 $ 91.6 $ 91.6 $ 107.0 $ 4.6 $ (9.2) $ 1.5 6.2 $ (184.9) $ 13.2 $ 194.1 $ 2.0 s 1.65 0.3 $ 0.2 $ 0.1 $ 1.2 $ 0.5$ 10.9) $ 39.7 $ 23.5 $ 5.3 $ (33.4) $ 54.7 $ (525.8) $ 22.2 $ 29.2 $ 25.8 $ 10.8 S (6.5) $ (71.8) $ (85.5) $ (2.1) $ 50.2 $ (64.13 $ (16.9) $ (33.4) S (8.2) $ (810) $ (59.0) $ (0.2) $ (9.6) $ (9.6) $ (16.4) $ (18.9) S (21.9) $ 62.3 $ (20.5) $ (2013) $ (57.9) S (42.6) $ 30.7 $ (8.71 $ 85.6 $ 43.3 $ (12.8) $ 18.8 $ 58.6 $ (33.8) $ 5.4 $ 29.9 $ 19.0 $ 38.1 $ (38.0) $ (86.6) $ 15.05 27.8 $ (132.1) $ 982.4 $1,175.9 $ 1.459.4 $ 1.305.4 $1.444.7 CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings Adjustments to reconcile net earnings Depreciation and amortization Stock compensation Loss (gain) on sale of assets Gain on disposition of businesses Operating lease right-of-use asset expense Accrued interest on zero-coupon subordinated notes Cumulative earnings less than in excess of distributions from equity method investments Asset impairment Deferred income taxes Other Change in assets and liabilities (net of effects of acquisitions): Increase in accounts receivable (net) Increase in unbilled services Increase in inventories Decrease increase) in prepaid expenses and other Increase decrease) in accounts payable (Decrease) increase in unearned revenue Increase in deferred revenue Decrease in accrued expenses and other Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures Purchases of investments Proceeds from sale of assets Proceeds from sale or distribution of investments Proceeds from sale of business Proceeds from disposition of businesses Proceeds from sale of held for sale assets Proceeds from exit of cross currency swaps Proceeds from sale of investments Acquisition of licensing technology Investments in equity affiliates Acquisition of businesses, net of cash acquired Net cash used for investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Senior Notes offerings Proceeds from term loan Payments on term loan Proceeds from revolving credit facilities Payments on revolving credit facilities Proceeds from bridge loan Payments on bridge loan Payments on Senior Notes Payments on zero-coupon subordinated notes Payment of debt issuance costs Payments on long-term lease obligations Noncontrolling interest distributions Deferred payments on acquisitions Net share settlement tax payments from issuance of stock to employees Excess tax benefits on stock based compensation Net proceeds from issuance of stock to employees Purchase of common stock Net cash used for financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year $ 255.8) $ (278.9) $ (312.9) $ (379.8) $ (400-2) $ (36.2) $ (22.3) $ (27.5) $ 0.6 $ 30.8 $ 5.5 $ 50.1 S 7.7 $ 112 $ 658.2 s 3.7 $ 654.5 $ 18.3 $ 1.7 $ 8.0 $ 13.5 $ (2.5) $ (11.7) $ (12.5) $ (36.2) $ (22.3) $(3.736.0) $ (548.6) $11.882.6) $ (117.8) $ (876.0) $13,994.9) S (795.7) $12.228.7) $ 206.7 $(1.283.1) - $ 2,900.0 $ 1,200.0 $ 1,050.0 $ 1.000.0 $ 750.0 - $ 850.0 $ (285.0) $ (150.0) $ (493.0) $ (295.0) $(1,002.0) $ 60.0 $ 139.5 $ 1,392.2 $ 467.2 $495.0 $ (60.0) $ (139.5) $(1.392.2) $ (467.2) $ (495.0) $ 400.0 $ (400.0) $ 500.0) $ (454.7) $ (500.1) $ (400.0) $ (687.9) $ (1.3) S (53.7) $ (33.9) $ (0.3) $ (36.7) $ (15.31 $ (11.6) $ (4.3) $ (8.4) $ (7.7) 19.3) $ (2.1) $ (1.0) $ (6.4) $ 10.1) $ (7.6) $ (2.6) $ (34.6) $ (47.4) $ (48.0) $ (40.6) $ 13.1 $ 98.9 $ 70.6 $ 73.6 $ 69.1 $ 64.7 $ (43.9) $ (338.1) $ (700.0) $ (450.0) $ 3,184.6 S (649.8) $ 631.9 $(1.389.9) $ (252.7) $ (35.7) $ (13.2) $ 20.5 $ (12.0) $ 1.8 $ 136.4 $ (282.8) $ (116.9) $110.2 $ (893) $ 580.0 $ 716.4 $ 433.6 $ 316.6 $ 426.8 $ 716.4 $ 433.6 $ 316.7 $ 426.8 $ 337.5

Answer 1

Hi Sir/ madam,

To reformulate your cash flow statement, you may follow the direct method of preparation of cash flow statement. The format for direct method will have change only in the computation of net cash flows from operating activities. The calculation of net cash flows from operating activities is shown as below:

Cash Flow from Operating Activities: Cash Collected from Customers Cash Payments: To Suppliers for Inventory For Salaries For Insurance For Interest For Income Taxes For Other Operating Expenses Net Cash Flow: Operating Activities Cash Flow from Investing Activities: Proceeds from Sale of Land Cost of New Plant Assets (Equipment) Net Cash Flow: Investing Activities Cash Flow from Financing Activities: Payment of Notes Payable (principal) Issuance of Common Stock Payment of Dividends Net Cash Flow: Financing Activities

In this, the cash flow from operations will only have a difference. The other areas such as investing and finance activities will have no changes.