KMBSolution4 - Kimberly-Clark Corporation (KMB) Solution to...

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Solution to Continuing Case, Chapter 4 THE CASH FLOW STATEMENT Calculating cash flow from operations and free cash flow from the cash flow statement The calculations follow equations 4.10 and 4.11 and Box 4.5: The 10-K does not report a number for interest income received in cash, so we use the accrual number from the income statement as an approximation. 2004 2003 2002 Reported cash flow from operations 2,726.2 2,552.2 2,341.5 Interest payments 175.3 178.1 183.3 Interest income (1) (17.9) (18.0) (15.7) Net interest payments 157.4 160.1 167.6 Tax (35.6%) 56.0 57.0 59.7 Net Interest payments after tax 101.4 103.1 107.9 Cash flow from operations 2,827.6 2,655.3 2,449.4 Reported cash used in investing activities 495.4 1,260.1 1,287.3 Investment in marketable securities 11.5 10.8 9.0 Sales of investments (38.0) (29.4) (44.9) Net increase in time deposits 22.9 (3.6) 149.0 130.4 36.9 1.0 Cash investment in operations 499.0 1,129.7 1,286.3 Free cash flow 2,328.6 1,525.6 1,163.1 (1) From income statement
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This note was uploaded on 10/07/2010 for the course ECTCS ec12947322 taught by Professor Johnathayeri during the Spring '10 term at Life.

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KMBSolution4 - Kimberly-Clark Corporation (KMB) Solution to...

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