B . How much did Big Box invest in new capital expenditures over the period? The
ID: 2774810 • Letter: B
Question
B. How much did Big Box invest in new capital expenditures over the period?
The amount that Big Box invested in new capital expenditures over the period is $______million (round to the nearest integer)
4. (Analyzing the cash flow statement) The cash flow statements for retailing giant BigBox Inc spanning the period 2010 – 2013 are found here:
In Millions of U. S. Dollars
B. How much did Big Box invest in new capital expenditures over the period?
The amount that Big Box invested in new capital expenditures over the period is $______million (round to the nearest integer)
C. Describe Big Box sources of financing in the financial markets over the period. (Make selection from below)
a. Big Box main source of financing in the financial markets over the period was the issuance of debt for the amount of $9,560 million.
b. Big Box main source of financing in the financial markets over the period was the issuance of common stock for the amount of $17,620 million.
c. Big Box main source of financing in the financial markets over the period was the issuance of debt for the amount $880 million
d. Big Box main source of financing in the financial markets over the period was the issuance of common stock for the amount of 880 million
D. Based solely on the cash flow statements for 2010 through 2013 (Select the best choice below)
a. Big Box management team has been investing heavily in capital expenditures, the payment of cash dividends, and the retirement of common stock. It has been financing them with the issuance of debt and internally generated funds.
b. Big Box management team has been investing heavily in capital expenditures, the payment of cash dividend. It has been financing them with the issuance of debt and internally generated funds.
c. Big Box management team has been investing heavily in capital expenditures, the payment of cash dividend and the retirement of common stock. It has been financing them with internally generated funds.
d. Big Box management team has been investing heavily in capital expenditures, and the retirement of common stock.It has been financing them with the issuance of debt and internally generated funds.
In Millions of U. S. Dollars
12 Months Ending 12/31/2013 12/31/2012 12/31/2011 12/31/2010 Net Income $13,090 $12,060 $11,030 $10,060 Depreciation Expense 6,450 6,260 5,020 4,030 Changes in Working Capital 1,240 2,340 2,420 980 Cash from Operating Activities $20,780 $20,660 $18,470 $15,070 Capital Expenditures $(16,050) $(14,510) $(13,990) $(12,270) Cash from Investing Activities $(16,050) $(14,510) $(13,990) $(12,270) Interest and Financing Cash Flow Items $(360) $(270) $(330) $80 Total Cash Dividends Paid (3,590) (2,830) (2,550) (2,170) Issuance (Retirement) of Stock (8,050) (1,500) (3,550) (4,520) Issuance (Retirement) of Debt 1,550 (110) 4,020 4,100 Cash From Financing Activities $(10,450) $(4,710) $(2,410) $(2,510) Net Change in Cash $(5,720) $1,440 $2,070 $290Explanation / Answer
Solution: Amount is million $ (B) Big Box invested in new capital expenditures over the period Note : here it is assumed that question is asked for total investment from year 2010 to 2013 Year Investment 2010 12270 2011 13990 2012 14510 2013 16050 Total 56820 (c ) Option A is correct. a. Big Box main source of financing in the financial markets over the period was the issuance of debt for the amount of $9,560 million. Year Debt 2010 4100 2011 4020 2012 -110 2013 1550 Total 9560 (D) Option A is correct Big Box management team has been investing heavily in (i) capital expenditures. (ii) the payment of cash dividends (iii) the retirement of common stock It has been financing them with the (i) issuance of debt and . (ii) internally generated funds.
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