What can investors glean from an analysis of the statement

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Reference no: EM131516212

Discussions

Discussion 1

Referencing this week's readings and lecture, describe the following terms as they relate to the statement of cash flows: cash, operating activities, investing activities, and financing activities. What can creditors, investors, and other users glean from an analysis of the statement of cash flows?

Discussion 2

Using the table below, explain the difference between net income and cash flow from operating activities for Techno in 2009 and analyze their cash flows for 2008 and 2009.

(in thousands)

2009

2008

Net income

$ 316,354

$  242,329

Noncash charges (credits) to income



Depreciation and amortization

68,156

62,591

Deferred taxes

15,394

22,814

 

$ 399,904

$  327,734

Cash Provided (Used) by Operating Assets and Liabilities:



Receivables

(288,174)

(49,704)

Inventories

(159,419)

(145,554)

Other current assets  

(1,470)

3,832

Accounts payable, accrued liabilities

73,684

41,079

Total Cash Provided by Operations

$ 24,525

$  177,387

Investment activities



Additions to plant and equipment

(94,1760)

(93,136)

Other investment activities

14,408

(34,771)

Net investment activities

($ 79,768)

($ 127,907)

Financing activities



Purchases of treasury stock

(45,854)

(39,267)

Dividends paid

(49,290)

(22,523)

Net changes in short-term borrowing

125,248

45,067

Additions to long-term borrowings

135,249

4,610

Repayments of long-term borrowings


(250,564)

Net financing activities

$  165,353

($ 262,677)

Increase (decrease) in cash

$  110,110

($ 213,197)

Beginning cash balance

78,114

291,311

Ending cash balance

$  188,224

$    78,114

Reference no: EM131516212

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