You are researching Time Manufacturing and have found the following accounting s

Question

You are researching Time Manufacturing and have found the following accounting statement of cash flows for the most recent year. You also know that the company paid $100 million in current taxes and had an interest expense of $50 million.

Calculate the operating cash flow. (Do not round intermediate calculations. Enter your answers in millions, for e.g., 10.2 million would be entered as 10.2. Negative amounts should be indicated by a minus sign.)

Calculate the capital spending. (Do not round intermediate calculations. Enter your answers in millions, for e.g., 10.2 million would be entered as 10.2. Negative amounts should be indicated by a minus sign.)

Calculate the net working capital cash flow. (Do not round intermediate calculations. Enter your answers in millions, for e.g., 10.2 million would be entered as 10.2. Negative amounts should be indicated by a minus sign.)

Calculate the cash flow to creditors. (Do not round intermediate calculations. Enter your answers in millions, for e.g., 10.2 million would be entered as 10.2. Negative amounts should be indicated by a minus sign.)

Calculate the cash flow to stockholders. (Do not round intermediate calculations. Enter your answers in millions, for e.g., 10.2 million would be entered as 10.2. Negative amounts should be indicated by a minus sign.)

You are researching Time Manufacturing and have found the following accounting statement of cash flows for the most recent year. You also know that the company paid $100 million in current taxes and had an interest expense of $50 million.

Explanation / Answer

Time Manufacturing Company Details Amt $ million       1 Operating Cash flow=                        327       2 Capital Spending=                      (195)       3 Net Working capital cash flow; Accounts Receivable                        (20) Inventory                          24 Accounts Payable                          19 Accrued Expense                        (11) Other                               5 Net Working capital cash flow;                          17       4 Cash Flow to creditors=Interest Paid- net new borrowing=50+(136+8-182)                          12       5 Cash flow to stockholders=Dividned paid-net New Equity raised=106+33-64                          75

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