Question

Examine the company’s balance sheet and statements of cash flow. Did the company obtain new debt or repay old debt?

****please explain how you know whether the company obtain new debt or repay old debt? What kind of financing activities related to it?

CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings on credit facility- floorplan line and other 6,597,406 (6,870,056)(6,957,866)(6,676,161) 220,020 6,954,328 7,019,070 Repayments on credit facility - floorplan line and other Borrowings on credit facilityacquisition line 68,086 (42,278)(220,020) 165,702 165,346 Repayments on credit facility - acquisition line Borrowings on other debt Principal payments on other debt Borrowings on debt related to real estate, net of debt issue costs (158,485) 156,023 (118,789)(121,199) 49,972 (45,928) 39,141 54,712 75,309 Principal payments on debt related to real estate (91,467) (29,391) (25,463) Employee stock purchase plan purchases, net of employee tax withholdings Proceeds from termination of mortgage swap Repurchases of common stock, amounts based on settlement date 2,717 4,603 3,868 918 0 (183,918) 0 (20,872) (109,543) (40,094)(127,606) (249) (19,987) (205,007) Tax effect from stock-based compensation Dividends paid Net cash provided by (used in) financing activities EFFECT OF EXCHANGE RATE CHANGES ON CASH 0 (20,466) 121,476 (3,345) 2,145 NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (10,911) 5,385 7,195 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period 29,631 24,246 17,051 18,720 29,631 24,246 CURRENT LIABILITIES: Floorplan notes payable - credit facility and other Offset account related to floorplan notes payable - credit facility Floorplan notes payable - manufacturer affiliates Offset account related to floorplan notes payable - manufacturer affiliates Current maturities of long-term debt and short-term financing Current liabilities from interest rate risk management activities Accounts payable Accrued expenses Total current liabilities LONG-TERM DEBT, net of current maturities DEFERRED INCOME TAXES LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES OTHER LIABILITIES COMMITMENTS AND CONTINGENCIES (NOTE 15) 1,292,452 (33,637) 417,924 1,240,695 (86,547) 397,183 (22,500) 77,609 (100) 92,967 115 1,996 412,981 177,070 2,198,487 1,318,184 124,404 8,583 97,125 419,350 197,494 2,386,565 1,281,489 134,683 1,696 100,948

Answer 1

From examination of cash flow statements, it shows that company has both obtained new debt and repaid old debt.

Following Financing Activities shows obtaining of new debt
1. Borrowings on credit facility - floor line plan and other
2. Borrowings on credit facility - Acquisition Line
3. Borrowings on other debt
4. Borrowings on debt related to real estate.

Following Financing activities shows repayment of debt
1. Repayment on credit facility - floor line plan and other
2. Repayment on credit facility - Acquisition Line
3. Repayment on other debt
4. Repayment on debt related to real estate.