Compute the components of the cash flow diagram

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Reference no: EM131404534

Free Cash Flow Calculations

The data shown in the table below come from the annual reports of three local companies: Trimeris, Martin Marietta Materials and IBM. Units are shown. For each company:

Compute the components of the cash flow diagram (i.e. Arrows 1-5). Show your work.
Draw the cash flow diagram and label it with the arrows and cash flow dollar amounts.
Write a brief paragraph interpreting your numbers.

Use the templates on the following pages (or a facsimile). Put your answer for each company on a separate page, one page per company. Neat, legible handwork is acceptable.

	Trimeris		Martin Marietta		IBM
Year ending:	31 Dec 02		31 Dec 02		31 Dec 02
	$ millions		$ billions		$ billions
Income Statement
Net Sales	1.1		1.7		81.2
- COGS(excluding Dep.)	0.0		1.3		46.5
- Depreciation	0.8		0.1		4.4
- SG&A Expense	76.0		0.1		25.5
= EBIT	-75.7		0.2		4.8
- Interest	0.0		0.0		0.1
- Taxes	0.0		0.1		2.2
= Net Income	-75.7		0.1		2.5

Dividends	0.0		0.0		1.0
Retained Earnings	-75.7		0.1		1.5
As of:	31 Dec 02	31 Dec 01	31 Dec 02	31 Dec 01	31 Dec 02	31 Dec 01
Balance Sheet *
Current Assets	150.3	75.2	0.5	0.5	41.7	42.5
Net Fixed Assets	4.2	5.4	1.8	1.7	54.8	45.8
Total Assets	154.5	80.6	2.3	2.2	96.5	88.3

Current Liabilities	21.9	23.5	0.2	0.2	34.6	35.1
Long-Term Debt	2.5	3.6	1.0	1.0	39.1	29.4
Com Stk & PIC	394.7	242.4	0.5	0.5	30.0	30.0
- Treasury Stock	0.0	0.0	0.0	0.0	18.8	16.3
Acc. Retain. Earn	-264.6	-188.9	0.6	0.5	11.6	10.1
Total Liab. & SE	154.5	80.6	2.3	2.2	96.5	88.3

Attachment:- Assignment File.rar

Reference no: EM131404534

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len1404534

2/23/2017 4:45:05 AM

I have Provide an example on the cash flow diagram in yellow. Please use it to answer the questions. on Ibm, Martin Mareitta, and Trimeris. Read Instructions and word document. Use the templates on the following pages (or a facsimile). Put your answer for each company on a separate page, one page per company. Neat, legible handwork is acceptable.

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