Calculate the percentage increase or decrease in cash for

Reference no: EM13589763

Review the following real-world Hewlett Packard Statement of Cash flows and address the two questions below:

Cash flow from operating activities	In millions	In millions
	For the year ended 2012	For the year ended 2011
Net (loss) earnings	$(12,650)	$7,074
Depreciation and amortization	5,095	4,984
Impairment of goodwill and purchased intangible assets	18,035	885
Stock-based compensation expense	635	685
Provision for doubtful accounts	142	81
Provision for inventory	277	217
Restructuring charges	2,266	645
Deferred taxes on earnings	(711)	166
Excess tax benefit from stock-based competition	(12)	(163)
Other, net	265	(46)
Accounts and financing receivables	1,269	(227)
Inventory	890	(1,252)
Accounts payable	(1,414)	275
Taxes on earnings	(320)	610
Restructuring	(840)	(1,002)
Other assets and liabilities	(2,356)	(293)
Net cash provided by operating activities	10,571	12,639
Cash flows from investing activities:
Investment in property, plant, and equipment	(3,706)	(4,539)
Proceeds from sale of property, plant, and equipment	617	999
Purchases of available-for-sale securities and other investments	(972)	(96)
Maturities and sales of available-for-sale securities and other investment	662	68
Payments in connection with business acquisitions, net of cash acquired	(141)	(10,480)
Proceeds from business divestiture, net	87	89
Net cash used in investing activities	(3,453)	(13,959)
Cash flow from financing activities:
(Payments) issuance of commercial paper and notes payable, net	(2,775)	(1,270)
Issuance of debt	5,154	11,942
Payment of debt	(4,333)	(2,336)
Issuance of common stock under employee stock plans	716	896
Repurchase of common stock	(1,619)	(10,117)
Excess tax benefit from stock-based compensation	12	163
Cash dividends paid	(1,015)	(844)
Net cash used in financing activities	(3,860)	(1,566)
Increase (decrease) in cash and cash equivalents	3,258	(2,886)
Cash and cash equivalents at beginning of period	8,043	10,929
Cash and cash equivalents at end of period	$11,301	$8,043

Required:

1) Calculate the percentage increase or decrease in cash for the total line of the operating, investing, and financing sections bolded above and explain the major reasons for the increase or decrease for each of these sections.

2) Calculate the free cash flow for 2012 and explain the meaning of this ratio.

Reference no: EM13589763

Questions Cloud

Please list and describe the four criteria for a lease to : list and describe the four criteria for a lease to be considered a capital lease. how many of the criteria does a lease

The board of directors declared a 2 per share cash divided : the board of directors declared a 2 per share cash divided on common stock and the corporation had 5000 share

In the reaction below 241 atm each of h2 and br2 were : question in the reaction below 2.41 atm each of h2 and br2 were placed into a 1.00 l flask and allowed to reacth2g

A stock subscription for 4000 shares of 5 par common stock : a stock subscription for 4000 shares of 5 par common stock at 10 per share was accepted .upon receipt of the balance

Calculate the percentage increase or decrease in cash for : review the following real-world hewlett packard statement of cash flows and address the two questions belowcash flow

During 2013 rachael parkins president of mathieson company : during 2013 rachael parkins president of mathieson company was paid a semimonthly salary of 6800. compute the amount of

Assume that the company also had 1000000 worth of : wicoms financial statements as of december 31 2006.preferred stock- 100000 shares authorized issued and outstanding 10

Barbara dowright believes that budgeting is the sole : barbara dowright believes that budgeting is the sole responsibility of accountants. you on the other hand disagree. you

Calculate the profit margin and gross profit rate for the : the following selected data was retrieved from the walmart inc. financial statements for the year ending january 31

User Account

All Pages