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 $84 million in current taxes and had an interest expense of $41 million. Use the accounting statement of cash flows to construct the financial statement of cash flows.
TIME MANUFACTURING
Statement of Cash Flows
($ in millions)
Operations
Net income………………………………………………..$192
Depreciation…………………………………………………76
Deferred taxes……………………………………………….13
Changes in assets and liabilities
Accounts receivable………………………………………-16
Inventories…………………………………………………17
Accounts payable………………………………………….13
Accrued expenses………………………………………….-7
Other…………………………………………………………2
Total cash flow from operations…………………………$290
Investing activities
Acquisition of fixed assets………………………………..-$198
Sale of fixed assets……………………………………………21
Total cash flow from investing activities…………………-$177
Financing activities
Retirement of long-term debt…………………………….-$150
Proceeds from long-term debt sales…………………………115
Change in notes payable………………………………………..8
Dividends……………………………………………………-81
Repurchase of stock………………………………………….-11
Proceeds from new stock issue………………………………..43
Total cash flow from financing activities………………….-$ 76
Change in cash (on balance sheet)………………………….$ 37
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