4th week Post - Pick a company, look up what their cash...

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Pick a company, look up what their cash balances are over the last 2 years and look at their Statement of Cash Flows. Describe what they are using the Cash from Operations for over the last two years- any trends? Do you agree with this trend for this company? Give reasons why you either agree or disagree with what they are doing with their cash and why. L IQUIDITY AND C APITAL R ESOURCES Cash Flow Information Net cash provided by operating activities We generated $2.9 billion of cash from operations in 2009 and 2008 compared to $2.6 billion in 2007. The cash provided by operating activities came from net earnings including noncontrolling interests adjusted primarily for non-cash expenses of depreciation and amortization, goodwill impairment charge, and changes in our operating assets and liabilities. We realized an increase in cash of $6 million in 2009 and decreases in cash of $412 million in 2008 and $179 million in 2007 from changes in operating assets and liabilities. The increase in the change in operating assets and liabilities in 2009, compared to 2008, is primarily due to an increase in the changes of income taxes receivable and payable, accounts payable and inventories, offset partially by decreases in the changes of deposits in-transit and prepaid expenses. The decrease in the change in operating assets and liabilities in 2008, compared to 2007, is primarily due to a decrease in the change in income taxes receivable and payable. These amounts are also net of cash contributions to our Company-sponsored defined benefit pension plans totaling $265 million in 2009, $20 million in 2008 and $51 million in 2007. The amount of cash paid for income taxes decreased in 2009, compared to 2008 and 2007, because we applied our 2008 overpayment of income taxes to current year taxes. The 2008 overpayment resulted primarily from accounting method changes related to asset capitalization. Net cash used by investing activities Cash used by investing activities was $2.3 billion in 2009, compared to $2.2 billion in 2008 and 2007. The amount of cash used by investing activities increased in 2009, compared to 2008, due primarily to higher capital spending, partially offset by decreased payments for acquisitions. Our use of cash for investing activities was consistent in 2008, compared to 2007. Capital expenditures, including changes in construction-in-progress payables and excluding acquisitions, were $2.3 billion in 2009, $2.2 billion in 2008 and $2.1 billion in 2007. Refer to the Capital Expenditures section for an overview of our supermarket storing activity during the last three years. Net cash used by financing activities
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Financing activities used $434 million of cash in 2009 compared to $769 million in 2008 and $310 million in 2007. The decrease in the amount of cash used for financing activities in 2009, compared to 2008, was primarily related to the decrease in the amount of treasury stock purchased and payments on long-term debt and our credit
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This note was uploaded on 12/04/2011 for the course ACCU 620 taught by Professor Talavera during the Spring '11 term at Chapman University .

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4th week Post - Pick a company, look up what their cash...

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