Question

Expand Your Critical Thinking 12-2 Columbia Sportswear Company's financial statements are presented in Appendix B. Click here to view Appendix B. Financial statements of VF Corporation are presented in Appendix C. Click here to view Appendix C. Based on the information contained in these financial statements, compute free cash flow for each company. (Show a negative free cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000). Enter amounts in thousands.) Columbia Sportswear Company VF Corporation Free cash flow in thousands) $

Answer 1

Free Cash Flow = Cash flow from operating activities - Capital Expediture - Cash Dividends
(values in thousand $)
Columbia Sportswear Company					2014	2013	2012
Cash flow from operating activities					$185,783	$274,275	$148,668
Less: Capital Expediture
Acquisition of business					$188,467
Purchase of short term investments					$48,243	$125,390	$83,969
Capital Expenditure					$60,283	$69,443	$50,491
Sale of short term investments					($112,895)	($78,636)	($42,319)
Sale of property,plant and equipment					($71)	($111)	($7,099)
Net Capital Expenses					$184,027	$116,086	$85,042
Less: Cash dividends paid					$39,836	$31,298	$29,780
Free Cash Flow					($38,080)	$126,891	$33,846
(values in thousand $)
VF Corporation					2014	2013	2012
Cash flow from operating activities					$1,697,629	$1,506,041	$1,275,000
Less: Capital Expediture
Capital expenditure					$234,077	$271,153	$251,940
Acquisition of business					$0	$0	$1,750
Software purchases					$67,943	$53,989	$30,890
Others					$27,235	$25,131	$8,230
Proceeds from sale of business					$0	$0	($72,519)
Net Capital Expenses					$329,255	$350,273	$220,291
Less: Cash dividends paid					$478,933	$402,136	$333,229
Free Cash Flow					$889,441	$753,632	$721,480
									Answer
Free Cash Flow (in thousands)				Columbia Sportswear Company		VF Corporation
2012				$33,846		$721,480
2013				$126,891		$753,632
2014				-$38,080		$889,441