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Textbook Site for:
Managerial Accounting , Fifth Edition
Belverd D. Needles, Jr., DePaul University
Marian Powers, Northwestern University
Sherry K. Mills, New Mexico State University
Henry R. Anderson, University of Central Florida
Research Activities

Statement of Cash Flows



Instructions: Visit three of the five annual reports listed below, or choose three others from the annual reports list included at this site. Locate the required cash flows information as specified in your text. A sample cash flow statement is shown below.


Five Annual Reports:
  1. Dupont (12/31/97)
  2. IBM (12/31/97)
  3. Intel (12/27/97)
  4. Kodak (12/31/97)
  5. National Semiconductor (5/25/97)




Sample Statement of Cash Flows:

Sun Annual Report
Years Ended June 30,
(In Thousands)1997199619951994
Cash flow from operating activities:
Net income$762,420$476,388$355,842$195,824
Adjustments to reconcile net income to operating cash flows:
Depreciation and amortization341,727284,083240,626248,247
Tax benefit of options exercised63,82553,00020,8379,088
Gain on sale of equity investment(62,245)------
Other non-cash items33,20868,3582,4825,122
Net increase in receivables(334,911)(160,238)(188,773)(225,857)
Net increase in inventories22,936(135,742)(24,724)(38,673)
Net (decrease) increase in accounts payable143,84517,275(59,833)93,388
Net increase in other current and non-current assets(152,510)(43,701)(2,006)(35,203)
Net increase in other current and non-current liabilities286,793128,891293,043103,808
Net cash provided from operating activities1,105,088688,314637,494355,744
Cash flow from investing activities:
Additions to property, plant and equipment(554,018)(295,638)(242,436)(213,229)
Acquisition of other assets(37,645)(83,889)(68,089)(115,199)
Acquisition of short-term investments(973,884)(1,301,798)(3,470,614)(2,799,408)
Payment for IMP acquisition(22,958)(96,100)----
Maturities of short-term investments634,7651,424,3242,300,8242,407,666
Sales of short-term investments347,771228,377804,862252,736
Net cash used by investing activities(543,724)(124,724)(675,453)(467,434)
Cash flow from financing activities:
Issuance of stock, net of employee repurchases52,96959,55479,61319,243
Acquisition of treasury stock(456,090)(522,336)(36,107)(294,427)
Proceeds from employee stock purchase plans81,31354,84042,75042,298
Reduction of short-term borrowings, net51,769(1,625)(27,901)(12,203)
Reduction of long-term borrowings and other(35,009)(39,038)(40,464)(38,123)
Net cash (used by) provided from financing activities(430,048)(448,605)17,891(283,212)
Net increase (decrease) in cash and cash equivalents131,316114,985(20,068)(394,902)
Cash and cash equivalents, beginning of year528,854413,869433,937828,839
Cash and cash equivalents, end of year$660,170$528,854$413,869$433,937
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest$15,126$18,140$14,229$20,788
Income taxes$380,814$193,461$113,999$63,267
Supplemental schedule of non-cash investing and financing activities:
The Company purchased all of the assets of Integrated Micro Products plc during fiscal year 1996. In conjunction with the acquisition, liabilities were assumed as follows:
Fair value of assets acquired--$101,500----
Cash paid for assets--(96,100)----
Liabilities assumed--5,400----
Non-cash item:
Stock issued in connection with acquisitions--$19,012----

Extended Research Activity

  • Search one of the business periodical www sites to find a recent article on one of the following topics:
    • Cash flows
    • Investing and financing activities (Search for a particular company, ie. Sun Microsystems)


  • Update the Sun Microsystems report information for the current fiscal year (ie. 6/30/98 or later). Compare cash flow from operating activities, investing activities, and financing activities for the current fiscal year with prior years.




Either print out your answers for submission or email them to your instructor.

   


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