KRONOS INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS In thousands Year Ende
ID: 2455094 • Letter: K
Question
KRONOS INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS In thousands Year Ended September 30 2005 2006 2004 activities: S41,439 53,904 $46,250 Net income Adjustments to reconcile net income to net cash and equivalents provided by operating activities: Depreciation Amortization of intangible assets Amortization of capitalized software Provision for (benefit from) deferred income taxes Stock based compensation Changes in certain 16,654 8,959 13,987 (9,225) 16,846 14,451 5,222 13.631 12,939 3,323 operating assets and liabilities Accounts receivable, net Deferred product revenues Deferred professional šervice revenues Deferred maintenance revenues Accounts payable, accrued compensation Taxes payable 5,244 (17,499) (19,096) (1,288) (6,649) 7,342 (18,06) (14,883) 2,137 3,895 23,480 5,927 8,535 and other liabilities (1,308) (2,657) 614) Tax benefit from exercise of stock options 12.591 10,702 Net cash and equivalents provided by operating activities 102,670 78,167 90,986 Investing activities Purchase of property, plant and equipment Capitalized internal software development costs Decrease (increase) in marketable securities Acquisitions of businesses and software, net of cash acquired (25,121) (25,045) (16,155) (13,499) (13,853) (12,751) 20,981 (54,769) 46,322 (164,662) (74,765) (164,66) 74765) (10,204) Net cash and equivalents used in investing activities (182,301) (67,341) (93,879) Financing activities: Net proceeds from exercise of stock options and employee purchase plans Tax benefit from exercise of stock options Repurchase of common stock Proceeds from revolving note payable Payments on revolving note pavable 25,586 24,275 (30,621) (39,483)(18,960) 97,884 17,049) Net cash and equivalents provided by (used in) financing activities 75,992 827 (13,897) 686 5,315 946 Effect of exchange rate changes on cash and equivalents (Decrease) increase in cash and equivalents Cash and equivalents at the beginning of the period (2,812) 43,492 (2,385) 45,877 42,509 Cash and equivalents at the end of the period S 40,680 43,492 45,877Explanation / Answer
a. The two non-cash items are
Depreciation of $16654
Amortization of Intangible Assets of $8959
b. The aggregate effect of changes in Kronos' working capital (operating) accounts during 2006 is $20216. The effect was to provide cash.
c. The main investing activities that took place during 2006 were:
Purchase of Property, plant and equipment
Acquisition of businesses and software net of cash acquired.
d. The accounts receivables have decreased during the year. There is positive impact of this change on the company's Cash flows.
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