MGAB01H3 Chapter Notes - Chapter 5: Money Market Fund, Cash Flow, Commercial Paper
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The Blackbeard Company Ltd provided the following information in regard to its operations for the year ended 30 June 2014:
Cash Book Summary | |||
Opening balance | $20,000 | Accounts Payable | $40,000 |
Accounts receivable | 100,000 | Bills Payable (suppliers) | 20,000 |
Bills Receivable (suppliers) | 20,000 | Interest paid | 60,000 |
Debenture Issue | 400,000 | Operating expenses | 180,000 |
Dividends received | 20,000 | Salaries & wages | 200,000 |
Interest received | 40,000 | Current tax payable | 80,000 |
Motor vehicles | 60,000 | Plant & machinery | 100,000 |
Share capital | 200,000 | Dividend paid | 120,000 |
Balance c/d | 60,000 | ||
860,000 | 860,000 | ||
Balance b/d | 60,000 |
Required:
(a) Net cash used in operating activities; (b) Net cash used in investing activities; (c) Net cash from financing activities;
(d) Net increase/(decrease) in cash and cash equivalents.
Please use the following format
Statement of Cash Flows for Blackbeard Company | ||
For the Financial Year Ended 30 June 2014 | ||
( i ) Cash flows from Operating Activities | Inflows/ | Inflows/ |
(Outflows) | (Outflows) | |
Net cash used in operating activities | ||
( ii ) Cash flows from Investing Activities | ||
Net cash used in Investing Activities | ||
( iii ) Cash flows from Financing Activities | ||
Avnet Inc.
Avnet is one of the worldâs largest value-added distributors of electronic componenets, enterprise computer and storage products, IT services and embedded subsystems. Avnet creates a vital link in the technology supply chain that connects the worldâs leading electronic component and computer product manufacturers and software developers with a global customer base of original equipment manufacturers, electronic manufacturing services providers, original design manufacturers, and valueadded resellers.8
Avnet, Inc. and Subsidiaries Consolidated Statements of Cash Flows
Years Ended | |||||
June 29, 2013 | June 30, 2012 | July 2, 2011 | |||
(Thousands) | |||||
Cash flows from operating activities: | |||||
Net income | $450,073 | $567,019 | $669,069 | ||
Non-cash and other reconciling items: | |||||
Depreciation and amortization | 120,676 | 101,336 | 81,389 | ||
Deferred income taxes (Note 9) | (10,019) | 11,782 | 15,966 | ||
Stock-based compensation (Note 12) | 43,677 | 35,737 | 28,931 | ||
Gain on bargain purchase and other (Note 2) | (31,011) | (2,918) | (22,715) | ||
Other, net (Note 15) | 75,327 | 66,263 | 56,846 | ||
Changes in (net of effects from businesses | |||||
acquired): | |||||
Receivables | (94,203) | 72,267 | (421,457) | ||
Inventories | 225,667 | 133,178 | (321,939) | ||
Accounts payable | (78,834) | (319,094) | 165,185 | ||
Accrued expenses and other, net | (5,156) | (136,852) | 26,804 | ||
Net cash flows provided by operating | |||||
activities | 696,197 | 528,718 | 278,079 | ||
Cash flows from financing activities: | |||||
(Repayments of) borrowings under accounts | |||||
receivable securitization program, net (Note 3) | (310,000) | 510,000 | 160,000 | ||
Issuance of notes in a public offering, net of | |||||
issuance costs (Note 7) | 349,258 | ? | ? | ||
Repayment of notes (Note 7) | ? | ? | (109,600) | ||
(Repayments of) proceeds from bank debt, | |||||
net (Note 7) | (179,861) | 86,823 | 1,644 | ||
(Repayments of) proceeds from other debt, net (Note 7) | (1,080) | (1,007) | 7,238 | ||
Repurchases of common stock (Note 4) | (207,192) | (318,333) | ? | ||
Other, net (Note 12) | 4,792 | 5,590 | 3,930 | ||
Net cash flows (used for) provided by financing activities | (344,083) | 283,073 | 63,212 | ||
Cash flows from investing activities: Purchases of property, plant and equipment | (97,379) | (128,652) | (148,707) | ||
Cash proceeds from sales of property, plant, and equipment | 3,018 | 1,046 | 10,621 | ||
Acquisitions of operations and investments, net of cash acquired (Note 2) | (262,306) | (313,218) | (690,997) | ||
Cash proceeds from divestiture activities (Note 2) | 3,613 | ? | 19,108 | ||
Net cash flows used for investing activities | (353,054) | (440,824) | (809,975) | ||
Effect of exchange rate changes on cash and cash equivalents | 3,419 | (39,437) | 51,916 | ||
Cash and cash equivalents: ? increase (decrease) | 2,479 | 331,530 | (416,768) | ||
? at beginning of year | 1,006,864 | 675,334 | 1,092,102 | ||
? at end of year | $ 1,009,343 | $1,006,864 | $ 675,334 |
Required:
(a) Using the Consolidated Statements of Cash Flows for Avnet, prepare a summary analysis for all three years.
(b) Write an analysis and interpretation of the cash flows for Avnet for all three years. Be sure to analyze the cash flows from operating activities, as well as the overall cash inflows and outflows for the firm.
(c) Evaluate the creditworthiness of Avnet based on only the cash flow statements.
(d) What information from the balance sheet would be useful to a creditor in determining whether to loan Avnet money?