Chapter 10 Solutions

Chapter 10 Solutions - Chapter 10 Statement of Cash Flows...

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Chapter 10 Statement of Cash Flows TO THE NET 1. a. SIC 3812 Search, Detection, Navigation, Guidance, Aeronautical Systems b. Item 1 Business Northrop Grumman Corporation… is a integrated enterprise consisting of some 25 formerly separate businesses that cover the entire defense spectrum, from undersea to outer space and into cyberspace. c. Direct Method The principle advantage of the direct method is that it shows the operating cash receipts and payments. Knowledge of where operating cash flows came from and how cash was used in past periods may be useful in estimating future cash flows. d. All of the noncash transactions involving investing and financing activities are important to understanding investing and financing activities but they are not part of cash flow. This would be a noncash investing and financing activity. 2. a. NT 10-K Notification of inability to timely file Form 10-K b. Dell Inc. is delaying the filing of the Form 10-K for its fiscal year ended February 2, 2007… because the independent investigation being conducted by the Audit Committee of the company’s Board of Directors has not been completed. c. Yes. When the statements are issued, they will likely result in changes to multiple years. 3. a. SIC 2082 Malt Beverages b. Item 1 Business On February 9, 2005, Adolph Coors Company merged with Molson, Inc. (the merger) 42
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c. 1. Operating cash flow / current maturities of long-term debt and current notes payable December 31, 2006 2005 $833,244,000 $422,275,000 $432,000 + $4,009,000 $14,001,000 + $334,101,000 $833,244,000 $422,275,0 00 $4,441,000 $348,102,0 00 187.63 1.21 2. Operating cash flow / total debt 2006 2005 $833,244,000 $422,275,000 $5,739,275,000 + $46,782,000 $6,390,736,000 + $83,812,000 $833,244,000 $422,275,000 $5,786,057,000 $6,474,548,00 0 14.40% 6.52% 3. Operating cash flow per share Operating Cash Flow – Preferred Dividends Diluted Weighted Average Common Shares Outstanding 2006 2005 $833,244,000 – 0 $422,275,000 – 0 $86,656,000 $80,036,000 $9.62 $5.28 4. Operating cash flow / cash dividends 2006 2005 $833,244,000 $422,275,000 $110,563,000 + $17,790,000 $109,960,000 + $10,569,000 43
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$833,244,000 $422,275,00 0 $128,353,000 $120,529,00 0 6.49 3.50 d. Operating cash flow / current maturities of long-term debt and current notes payable went from a very low number to a very high number. Operating cash flow / total debt improved materially. Operating cash flow per share improved materially. Operating cash flow / cash dividends improved materially. 4. a. SIC 5621 Retail – Women’s Clothing Stores b. Item 1 Busienss Ann Taylor Stores Corporation, through its wholly-owned subsidiaries, is a leading national specialty retailer of women’s apparel, shoes, and accessories sold primarily under the “Ann Taylor” and “Ann Taylor Loft” (“LOFT”) and “Ann Taylor Factory” brands. c.
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Chapter 10 Solutions - Chapter 10 Statement of Cash Flows...

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