Case #1

Case #1 - 4. Analyze Home Depots Cash Flow Statements. Is...

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4. Analyze Home Depot’s Cash Flow Statements. Is Home Depot funding its investments out of internal cash flow or from external financing? Are dividends financed out of internal cash flow or by external financing? If Home Depot is using external financing, what percentage is debt financing? Common stock financing? Is Home Depot funding its investments out of internal cash flow or from external financing? 2001 2000 1999 1998 Cash Flows from Operating Activities 2,796 2,446 1,917 1,029 Capital Expenditures (3,558) (2,581) (2,053) (1,420) Internal Cash Flow (762) (135) (136) (391) *Because capital expenditures exceed Cash Flow from Operating Activities, Home Depot is funding its investments from internal cash flow as well as external financing in all four years. The amount of external funding needed from 2001-1998 was $762 million, $135 million, $136 million, and $391 million respectively. Are dividends financed out of internal cash flow or by external financing?
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Case #1 - 4. Analyze Home Depots Cash Flow Statements. Is...

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