OMM 622 Week 4 Discussion 2

Week 4 – Discussion 2

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Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your responses. Refer to the Discussion Forum Grading Rubric under the Settings icon above for guidance on how your discussion will be evaluated.

 

Analyzing the   Statement of Cash Flows

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

Respond to at least two of your classmates’ posts.

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