Question

SEC 10K Project: Statement of Cash Flows

Respond to one or more question(s) from each of the three categories below. Category: Operating Activities 1. State whether your corporation uses the direct or indirect method of preparing the Statement of Cash Flows and describe how the Statement would be different under these two methods. 2. What are the largest increases and decreases in the operating activities section of your corporation's Statement of Cash Flows? 3. Given the industry your corporation operates in and the current economic environment, explain any unexpected operating activities that caused cash flow to decrease.    Category: Investing and Financing Activities 1. Explain similarities and or differences in preparing the Statement of Cash Flows using International Financial Reporting Standards (IFRS). 2. Describe investments reported on your corporation's Statement of Cash Flows in the current and most recent past year. 3. Review your corporation's Statement of Cash Flows over the past 3 years and explain any financing trends. Category: Analysis 1. Calculate the following ratio for the most recent two years and comment on the results of your ratio analysis.   How does the result for your corporation compare to the industry average?      a. Free cash flow RITE AID CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Year Ended March 3, 2018 (52 Weeks) March 4, 2017 (53 Weeks) February 27, 2016 (52 Weeks) OPERATING ACTIVITIES: Net income $ 943,470 $ 4,053 $ 165,465 Net income (loss) from discontinued operations, net of tax 1,293,002 (27 ) 63,377 ? ? ? ? ? ? ? ? ? ? ? Net (loss) income from continuing operations $ (349,532 ) $ 4,080 $ 102,088 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Adjustments to reconcile to net cash provided by operating activities: Depreciation and amortization 386,057 407,366 361,134 Lease termination and impairment charges 58,765 45,778 40,477 Goodwill impairment 261,727 — — LIFO (credit) charge (28,827 ) (3,721 ) 7,892 Gain on sale of assets, net (25,872 ) (6,649 ) (606 ) Stock-based compensation expense 25,793 23,482 37,948 Loss on debt retirements, net — — 33,205 Changes in deferred taxes 260,411 35,038 79,488 Excess tax benefit on stock options and restricted stock — (543 ) (22,884 ) Changes in operating assets and liabilities: Accounts receivable (349,481 ) (159,590 ) 264,525 Inventories 18,835 (49,381 ) 136,823 Accounts payable 211,511 39,542 (480 ) Other assets and liabilities, net 42,083 (152,375 ) (329,267 ) ? ? ? ? ? ? ? ? ? ? ? Net cash provided by operating activities of continuing operations 511,470 183,027 710,343 ? ? ? ? ? ? ? ? ? ? ? INVESTING ACTIVITIES: Payments for property, plant and equipment (185,879 ) (254,149 ) (391,199 ) Intangible assets acquired (28,885 ) (39,648 ) (89,874 ) Acquisition of businesses, net of cash acquired — — (1,778,377 ) Proceeds from insured loss 4,239 — — Proceeds from sale-leaseback transactions — — 26,953 Proceeds from dispositions of assets and investments 27,586 16,852 9,773 ? ? ? ? ? ? ? ? ? ? ? Net cash used in investing activities of continuing operations (182,939 ) (276,945 ) (2,222,724 ) ? ? ? ? ? ? ? ? ? ? ? FINANCING ACTIVITIES: Proceeds from issuance of long-term debt — — 1,800,000 Net (payments to) proceeds from revolver (265,000 ) 330,000 375,000 Principal payments on long-term debt (9,882 ) (16,588 ) (667,494 ) Change in zero balance cash accounts 35,605 43,080 (62,878 ) Net proceeds from the issuance of common stock 5,796 6,951 11,376 Financing fees paid for early debt redemption — — (26,003 ) Excess tax benefit on stock options and restricted stock — 543 22,884 Deferred financing costs paid — — (34,634 ) Payment for taxes related to net share settlement of equity awards (4,103 ) (6,254 ) (17,506 ) ? ? ? ? ? ? ? ? ? ? ? Net cash (used in) provided by financing activities of continuing operations             (237,584 ) 357,732 1,400,745 ? ? ? ? ? ? ? ? ? ? ? Cash flows from discontinued operations: Operating activities of discontinued operations (245,126 ) 49,090 304,565 Investing activities of discontinued operations 3,496,222 (187,314 ) (179,134 ) Financing activities of discontinued operations (3,140,119 ) (4,651 ) (5,223 ) ? ? ? ? ? ? ? ? ? ? ? Net cash provided by (used in) discontinued operations 110,977 (142,875 ) 120,208 ? ? ? ? ? ? ? ? ? ? ? Increase in cash and cash equivalents 201,924 120,939 8,572 Cash and cash equivalents, beginning of year 245,410 124,471 115,899 ? ? ? ? ? ? ? ? ? ? ? Cash and cash equivalents, end of year $ 447,334 $ 245,410 $ 124,471 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?

Answer 1