Professional Documents
Culture Documents
857
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Number Objective Description Difficulty Time AACSB AICPA
PE16-7B 16-3 Cash payments for Easy 5 min Analytic FN-Measurement
merchandisedirect
method
Ex16-1 16-1 Cash flows for operat- Easy 5 min Analytic FN-Measurement
ing activities-net loss
Ex16-2 16-1 Effects of transactions Easy 10 min Analytic FN-Measurement
on cash flows
Ex16-3 16-1 Classifying cash flows Easy 10 min Analytic FN-Measurement
Ex16-4 16-2 Cash flows from op- Easy 10 min Analytic FN-Measurement
erating activities-
indirect method
Ex16-5 16-2 Cash flows from op- Easy 10 min Analytic FN-Measurement
erating activities-
indirect method
Ex16-6 16-1, 16-2 Cash flows from op- Easy 10 min Analytic FN-Measurement
erating activities-
indirect method
Ex16-7 16-1, 16-2 Cash flows from op- Easy 10 min Analytic FN-Measurement
erating activities-
indirect method
Ex16-8 16-2 Determining cash Easy 5 min Analytic FN-Measurement
payments to stock-
holders
Ex16-9 16-2 Reporting changes in Easy 5 min Analytic FN-Measurement
equipment on state-
ment of cash flows
Ex16-10 16-2 Reporting changes in Easy 5 min Analytic FN-Measurement
equipment on state-
ment of cash flows
Ex16-11 16-2 Reporting land trans- Easy 5 min Analytic FN-Measurement
actions on statement
of cash flows
Ex16-12 16-2 Reporting stockhold- Moderate 10 min Analytic FN-Measurement
ers' equity items on
statement of cash
flows
Ex16-13 16-2 Reporting land acqui- Easy 5 min Analytic FN-Measurement
sition for cash and
mortgage note on
statement of cash
flows
Ex16-14 16-2 Reporting issuance Moderate 10 min Analytic FN-Measurement
and retirement of
long-term debt
Ex16-15 16-2 Determining net in- Moderate 10 min Analytic FN-Measurement
come from cash flow
from operating activi-
ties
Ex16-16 16-2 Cash flows from op- Moderate 15 min Analytic FN-Measurement
erating activities-
indirect method
Ex16-17 16-2 Statement of cash Moderate 20 min Analytic FN-Measurement
flows
Ex16-18 16-2 Statement of cash Moderate 15 min Analytic FN-Measurement
flows-indirect method
Ex16-19 16-3 Cash flows from op- Easy 5 min Analytic FN-Measurement
erating activities-direct
method
Ex16-20 16-3 Cash paid for mer- Easy 5 min Analytic FN-Measurement
chandise purchases
858
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Number Objective Description Difficulty Time AACSB AICPA
859
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
EYE OPENERS
1. It is costly to accumulate the data needed. c. The gain of $9,000 would be deducted
2. It focuses on the differences between net from net income in determining net cash
income and cash flows from operating activi- flow from operating activities; $84,000
ties, and the data needed are generally would be reported as cash flow from in-
more readily available and less costly to ob- vesting activities.
tain than is the case for the direct method. 8. Cash flow from financing activities
3. In a separate schedule of noncash investing issuance of bonds, $4,200,000
and financing activities accompanying the 9. a. Cash flow from investing activities
statement of cash flows. disposal of fixed assets, $12,000
4. a. No effect The $12,000 gain on asset disposal
b. No should be deducted from net income in
5. The $25,000 increase must be added to in- determining cash flow from operating
come from operations because the amount activities under the indirect method.
of cash paid to merchandise creditors was b. No effect
$25,000 less than the amount of purchases 10. The same. The amount reported as the net
included in the cost of goods sold. cash flow from operating activities is not af-
6. The $15,000 decrease in salaries payable fected by the use of the direct or indirect
should be deducted from income to deter- method.
mine the amount of cash flows from operat- 11. Cash received from customers, cash pay-
ing activities. The effect of the decrease in ments for merchandise, cash payments for
the amount of salaries owed was to pay operating expenses, cash payments for in-
$15,000 more cash during the year than had terest, cash payments for income taxes.
been recorded as an expense. 12. Reported in a separate schedule, as follows:
7. a. $9,000 gain Schedule of noncash financing activities:
b. Cash inflow of $84,000 Issuance of stock for
acquisitions ................... $128 million
860
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resold, copied, or distributed without the prior consent of the publisher.
PRACTICE EXERCISES
PE 161A
a. Financing d. Investing
b. Operating e. Operating
c. Investing f. Operating
PE 161B
a. Operating d. Financing
b. Financing e. Operating
c. Investing f. Operating
PE 162A
PE 162B
861
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resold, copied, or distributed without the prior consent of the publisher.
PE 163A
PE 163B
PE 164A
862
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
PE 164B
PE 165A
The loss on sale of land is deducted from net income as shown below:
Loss on sale of land ...................................................................... $ 15,000
The purchase and sale of land is reported as part of cash flows from investing ac-
tivities as shown below:
Cash received for sale of land .................................................. 90,000
Cash paid for purchase of land ................................................ (200,000)
PE 165B
The gain on sale of land is deducted from net income as shown below:
Gain on sale of land....................................................................... $ (55,000)
The purchase and sale of land is reported as part of cash flows from investing ac-
tivities as shown below:
Cash received for sale of land .................................................. 375,000
Cash paid for purchase of land ................................................ (500,000)
PE 166A
863
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resold, copied, or distributed without the prior consent of the publisher.
PE 166B
PE 167A
PE 167B
864
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
EXERCISES
Ex. 161
There were net additions, such as depreciation and amortization of intangible as-
sets of $1.133 billion, to the net loss reported on the income statement to convert
the net loss from the accrual basis to the cash basis. For example, depreciation is
an expense in determining net income, but it does not result in a cash outflow.
Thus, depreciation is added back to the net loss in order to determine cash flow
from operations.
The cash from operating activities detail is provided as follows for class discus-
sion:
865
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resold, copied, or distributed without the prior consent of the publisher.
Ex. 162
Ex. 163
a. financing g. financing
b. operating h. financing
c. investing i. investing
d. financing j. financing
e. investing k. financing
f. investing
Ex. 164
a. deducted g. deducted
b. deducted h. deducted
c. added i. deducted
d. added j. added
e. added k. added
f. added
Ex. 165
b. Yes. The amount of cash flows from operating activities reported on the
statement of cash flows is not affected by the method of reporting such flows.
Ex. 167
Note: The change in dividends payable would be used to adjust the dividends de-
clared in obtaining the cash paid for dividends in the financing activities section
of the statement of cash flows.
867
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resold, copied, or distributed without the prior consent of the publisher.
Ex. 168
Ex. 169
Ex. 1610
Ex. 1611
868
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resold, copied, or distributed without the prior consent of the publisher.
Ex. 1612
Ex. 1613
Ex. 1614
869
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resold, copied, or distributed without the prior consent of the publisher.
Ex. 1615
Ex. 1616
a.
JONES SODA CO.
Cash Flows from Operating Activities
(in thousands)
Cash flows from operating activities:
Net income .................................................................. $1,330
Adjustments to reconcile net income to net cash
flow from operating activities:
Depreciation ............................................................ 193
Stock-based compensation expense (noncash) .. 20
Changes in current operating assets and liabilities:
Increase in accounts receivable ............................ (1,328)
Increase in inventories ........................................... (1,550)
Increase in prepaid expenses ................................ (124)
Increase in accounts payable ................................ 686
Net cash flow used in operating activities................ $(773)
b. Jones Soda is a very profitable company, but is using cash in operating ac-
tivities (a negative cash flow). The reason is the large increases in accounts
receivable and inventory. The current assets and liabilities are all increasing
because Jones Soda is expanding rapidly. Thus, the negative cash flows from
operating activities should not be too much of a concern to management.
870
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resold, copied, or distributed without the prior consent of the publisher.
Ex. 1617
Ex. 1618
871
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resold, copied, or distributed without the prior consent of the publisher.
Ex. 1618 Concluded
5. The correct amount of cash at the beginning of the year, $83,600, should be
added to the increase in cash.
6. The final amount should be the amount of cash at the end of the year, $123,900.
872
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resold, copied, or distributed without the prior consent of the publisher.
Ex. 1619
a. Sales............................................................................. $450,000
Plus decrease in accounts receivable balance ........ 21,000
Cash received from customers.................................. $471,000
b. Income tax expense .................................................... $ 35,000
Plus decrease in income tax payable ........................ 3,100
Cash payments for income tax .................................. $ 38,100
Ex. 1620
Ex. 1621
873
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Ex. 1622
874
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Ex. 1623
Computations:
1. Sales ........................................................................................................ $184,000
Deduct increase in accounts receivable............................................... 1,900
Cash received from customers.............................................................. $182,100
2. Cost of merchandise sold ...................................................................... $ 67,000
Add increase in inventories ................................................................... 5,000
$ 72,000
Deduct increase in accounts payable ................................................... 2,000
Cash payments for merchandise........................................................... $ 70,000
3. Operating expenses other than depreciation ....................................... $ 49,000
Add decrease in accrued expenses ...................................................... 700
$ 49,700
Deduct decrease in prepaid expenses.................................................. 600
Cash payments for operating expenses ............................................... $ 49,100
Ex. 1624
875
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Ex. 1625
876
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
PROBLEMS
Prob. 161A
877
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Prob. 161A Concluded
A B C D E
878
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Prob. 162A
879
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Prob. 162A Continued
A B C D E
880
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Prob. 162A Concluded
A B C D E
881
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Prob. 163A
882
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Prob. 163A Concluded
A B C D E
883
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Prob. 164A
Schedule Reconciling Net Income with Cash Flows from Operating Activities:
Net income ................................................................................. $ 117,900
Adjustments to reconcile net income to net cash flow from
operating activities:
Depreciation expense............................................................ 23,600
Gain on sale of investments ................................................. (32,000)
Changes in current operating assets and liabilities:
Increase in accounts receivable ........................................... (16,300)
Increase in inventories .......................................................... (6,400)
Increase in accounts payable ............................................... 23,500
Decrease in accrued expense............................................... (2,400)
Net cash flow from operating activities ................................... $ 107,900
*Dividends paid: $88,300 + $19,000 $21,000 = $86,300
884
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resold, copied, or distributed without the prior consent of the publisher.
Prob. 164A Concluded
Computations:
1. Sales ................................................................................ $940,000
Deduct increase in accounts receivable....................... 16,300
Cash received from customers...................................... $923,700
2. Cost of merchandise sold .............................................. $489,300
Add increase in inventories ........................................... 6,400
$495,700
Deduct increase in accounts payable ........................... 23,500
Cash payments for merchandise................................... $472,200
3. Operating expenses other than depreciation ............... $278,900
Add decrease in accrued expenses .............................. 2,400
Cash payments for operating expenses ....................... $281,300
885
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resold, copied, or distributed without the prior consent of the publisher.
Prob. 165A
Schedule Reconciling Net Income with Cash Flows from Operating Activities:
Net income ...................................................................... $ 65,900
Adjustments to reconcile net income to net cash flow
from operating activities:
Depreciation expense ............................................... 7,300
Loss on sale of investments..................................... 5,000
Changes in current operating assets and liabilities:
Increase in accounts receivable............................... (9,300)
Increase in inventories.............................................. (4,200)
Increase in accounts payable................................... 5,700
Increase in accrued expenses.................................. 1,800
Net cash flow from operating activities ........................ $ 72,200
*Dividends paid: $50,000 + $10,000 $12,500 = $47,500
886
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resold, copied, or distributed without the prior consent of the publisher.
Prob. 165A Concluded
Computations:
1. Sales ................................................................................ $963,400
Deduct increase in accounts receivable....................... 9,300
Cash received from customers...................................... $954,100
2. Cost of merchandise sold .............................................. $662,100
Add increase in inventories ........................................... 4,200
$666,300
Deduct increase in accounts payable ........................... 5,700
Cash payments for merchandise................................... $660,600
3. Operating expenses other than depreciation ............... $195,000
Deduct increase in accrued expenses .......................... 1,800
Cash payments for operating expenses ....................... $193,200
887
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Prob. 161B
888
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Prob. 161B Concluded
A B C D E
889
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Prob. 162B
890
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Prob. 162B Concluded
A B C D E
891
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Prob. 163B
892
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Prob. 163B Concluded
A B C D E
893
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Prob. 164B
894
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Prob. 164B Concluded
Computations:
1. Sales ................................................................................ $3,745,700
Deduct increase in accounts receivable....................... 12,100
Cash received from customers...................................... $3,733,600
2. Cost of merchandise sold .............................................. $1,532,500
Add increase in inventories ........................................... 17,700
$1,550,200
Deduct increase in accounts payable ........................... 14,600
Cash payments for merchandise................................... $1,535,600
3. Operating expenses other than depreciation ............... $1,936,800
Add decrease in accrued expenses .............................. 4,600
Cash payments for operating expenses ....................... $1,941,400
895
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Prob. 165B
896
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Prob. 165B Concluded
Computations:
1. Sales ................................................................................ $ 1,632,500
Deduct increase in accounts receivable....................... 11,800
Cash received from customers...................................... $ 1,620,700
2. Cost of merchandise sold .............................................. $ 908,300
Add increase in inventories ........................................... 15,400
$ 923,700
Deduct increase in accounts payable ........................... 14,700
Cash payments for merchandise................................... $ 909,000
3. Operating expenses other than
depreciation ............................................................... $ 609,000
Add decrease in accrued expenses .............................. 6,500
Cash payments for operating expenses ....................... $ 615,500
4. Cash dividends declared................................................ $ 60,000
Deduct increase in dividends payable .......................... 3,000
Cash paid for dividends ................................................. $ 57,000
897
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
SPECIAL ACTIVITIES
SA 161
Although this situation might seem harmless at first, it is, in fact, a violation of
generally accepted accounting principles. The operating cash flow per share
figure should not be shown on the face of the income statement. The income
statement is constructed under accrual accounting concepts, while operating
cash flow undoes the accounting accruals. Thus, unlike Lindas assertion that
this information would be useful, more likely the information could be confusing
to users. Some users might not be able to distinguish between earnings and
operating cash flow per shareor how to interpret the difference. By agreeing
with Linda, Ben has breached his professional ethics because the disclosure
would violate generally accepted accounting principles. On a more subtle note,
Linda is being somewhat disingenuous. Apparently, Linda is not pleased with this
years operating performance and would like to cover the earnings bad news
with some cash flow good news disclosures. An interesting question is: Would
Linda be as interested in the dual per share disclosures in the opposite sce-
nariowith earnings per share improving and cash flow per share deteriorating?
Probably not.
SA 162
Start-up companies are unique in that they frequently will have negative retained
earnings and operating cash flows. The negative retained earnings are often due
to losses from high start-up expenses. The negative operating cash flows are
typical because growth requires cash. Growth must be financed with cash before
the cash returns. For example, a company must expend cash to make the service
in Period 1 before selling it and receiving cash in Period 2. The start-up company
constantly faces spending cash today for the next periods growth. For Aspen
Technologies Inc., the money spent on salaries to develop the business is a cash
outflow that must occur before the service provides revenues. In addition, the
company must use cash to market its service to potential customers. In this
situation, the only way the company stays in business is from the capital pro-
vided by the owners. This owner-supplied capital is the lifeblood of a start-up
company. Banks will not likely lend money on this type of venture (except with
assets as security). Aspen Technologies Inc. could be a good investment. It all
depends on whether the new service has promise. The financial figures will not
reveal this easily. Only actual sales will reveal if the service is a hit. Until this time
the company is at risk. If the service is not popular, the company will have no
cash to fall back onit will likely go bankrupt. If, however, the service is success-
ful, then Aspen Technologies Inc. should become self-sustaining and provide a
good return for the shareholders.
898
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
SA 163
The senior vice president is very focused on profitability but has been bleeding
cash. The increase in accounts receivable and inventory is striking. Apparently,
the new credit card campaign has found many new customers, since the ac-
counts receivable is growing. Unfortunately, it appears as though the new cam-
paign has done a poor job of screening creditworthiness in these new customers.
In other words, there are many new credit card purchasersunfortunately, they
do not appear to be paying off their balances. The new merchandise purchases
appear to be backfiring. The company has received some good deals, except
that they are only good deals if it can resell the merchandise. If the merchan-
dise has no customer appeal, then that would explain the inventory increase. In
other words, the division is purchasing merchandise that sits on the shelf, re-
gardless of pricing. The reduction in payables is the result of the division becom-
ing overdue on payments. The memo reports that most of the past due payables
have been paid. This situation is critical in the retailing business. A retailer can-
not afford a poor payment history, or it will be denied future merchandise ship-
ments. This is a signal of severe cash problems. Overall, the picture is of a re-
tailer having severe operating cash flow difficulties.
Note to Instructors: This scenario is essentially similar to Kmarts path to even-
tual bankruptcy. It reported earnings, while having significant negative cash flows
from operations due to expanding credit too liberally (increases in accounts re-
ceivable) and purchasing too much unsaleable inventory (increases in inventory).
Eventually, Kmarts inventory write-down resulted in significant losses about the
time it entered bankruptcy.
899
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
SA 164
a. 1. Normal practice for determining the amount of cash flows from operating
activities during the year is to begin with the reported net income. This
net income must ordinarily be adjusted upward and/or downward to de-
termine the amount of cash flows. Although many operating expenses
decrease cash, depreciation does not do so. The amount of net income
understates the amount of cash flows provided by operations to the ex-
tent that depreciation expense is deducted from revenue. Accordingly,
the depreciation expense for the year must be added back to the re-
ported net income in arriving at cash flows from operating activities.
2. Generally accepted accounting principles require that significant trans-
actions affecting future cash flows should be reported in a separate
schedule to the statement, even though they do not affect cash. Accord-
ingly, even though the issuance of the common stock for land does not
affect cash, the transaction affects future cash flows and must be re-
ported.
3. The $50,000 cash received from the sale of the investments is reported in
the cash flows from investing activities section. Since the sale included a
gain of $8,000, to avoid double reporting of this amount, the gain is de-
ducted from net income to remove it from the determination of cash
flows from operating activities.
4. The balance sheets for the last two years will indicate the increase in
cash but will not indicate the firms activities in meeting its financial ob-
ligations, paying dividends, and maintaining and expanding operating
capacity. Such information, as provided by the statement of cash flows,
assists creditors in assessing the firms solvency and profitabilitytwo
very important factors bearing on the evaluation of a potential loan.
b. The statement of cash flows indicates a strong liquidity position for Cabinet
Craft Inc. The increase in cash of $97,800 for the past year is more than ade-
quate to cover the $50,000 of new building and store equipment costs that will
not be provided by the loan. Thus, the statement of cash flows most likely will
enhance the companys chances of receiving a loan. However, other informa-
tion, such as a projection of future earnings, a description of collateral
pledged to support the loan, and an independent credit report, would nor-
mally be considered before a final loan decision is made.
900
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resold, copied, or distributed without the prior consent of the publisher.
SA 165
a. and b.
Recent statements of cash flows for Johnson & Johnson and AMR Corp. (Ameri-
can Airlines) are shown on the following pages. The actual analysis may be dif-
ferent due to updated information. However, this answer shows the structure for
a possible response.
901
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
SA 165 Continued
AMR Corp.
AMR is weaker than J&J. AMR had cash flows from operating activities of over $1
billion. In addition, AMR had net negative cash flows from investing activities of
approximately $1.5 billion. As a result, AMR needed sources of cash from financ-
ing activities. The net sources of cash from financing activities was $533 million.
AMR generates sufficient cash from operations to maintain the necessary
investment in its fixed assets. Free cash flow is approximately $343 million
($1,024 $681). However, AMR does not generate cash at nearly the same amount
as Johnson & Johnson.
902
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
SA 165 Continued
AMR CORP.
Consolidated Statements of Cash Flows
31-Dec-05
In Millions For Period Ended Dec 31, 2005 12/31/05
Cash Flow from Operating Activities:
Net loss........................................................................................... $ (861)
Adjustments to reconcile net loss to net cash provided (used)
by operating activities:
Depreciation ...................................................................................... 1,033
Amortization...................................................................................... 131
Provisions for asset impairments and restructuring charges ...... 134
Redemption payments under operating leases for special
facility revenue bonds .................................................................. (104)
Change in assets and liabilities:
Decrease (increase) in receivables ................................................. (156)
Decrease (increase) in inventories.................................................. (59)
Increase (decrease) in accounts payable and accrued liabilities . 250
Increase (decrease) in air traffic liability......................................... 432
Increase (decrease) in other liabilities and deferred credits......... 197
Other, net........................................................................................... 27
Net cash (used) provided by operating activities.................................... $ 1,024
Cash Flow from Investing Activities:
Capital expenditures, including purchase deposits on flight
equipment ........................................................................................... (681)
Net increase in short-term investments.............................................. (867)
Net decrease (increase) in restricted cash and short-term
investments ........................................................................................ (32)
Proceeds from sale of equipment and property and other
investments ........................................................................................ 40
Other ...................................................................................................... 1
Net cash used for investing activities ...................................................... $(1,539)
903
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
SA 165 Concluded
904
This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.