Question

Question 3: Please create a statement of cash flow with indirect method- Please provide answers to each category and a one paragraph analysis of the cash flow using the indirect method.

Statement of Cash Flow with Indirect method

	2011	2010	Difference	Operating	Investing	Financing
ASSETS:
Current Assets
Cash and equivalents	$ 2,291.1	$ 2,133.9
Short-term investments	1,164.2	642.2
Account receivable	2,883.9	2,795.3
Inventory	2,357.0	2,438.4
Prepaid expenses and other assets	765.6	602.3
Deferred income taxes, net	272.4	227.2
Total Current Assets	$ 9,734.0	$ 8,839.3
Property and equipment, gross	4,255.7	4,103.0
Accumulated depreciation	(2,221.9)	(2,298.0)
Property and equipment, net	$ 1,957.7	$ 1,891.1
Identifiable intangible assets	467.4	743.1
Good will	193.5	448.8
Deferred income taxes and other assets	897.0	520.4
Total Assets	$13,249.6	$12,442.7
Liabilities and Stockholders’ Equity
Current Liability :
Current portion of long-term debt	$       32.0	$          6.3
Note Payable	342.9	177.7
Account Payable	1,031.9	1,287.6
Accrued liabilities	1,783.9	1,761.9
Income taxes payable	86.3	88.0
Total Current Liabilities	$   3,277.0	$ 3,321.5
Long term debt	437.2	441.1
Deferred taxes and other long-term liabilities	842.0	854.5
Total Liabilities	$ 4,556.2	$ 4,617.1
Redeemable preferred stock	$         0.3	$         0.3
Common Shareholders’ Equity
Common stock	2.8	2.8
Capital in excess of stated value	$ 2,781.4	$ 2,497.8
Retained earnings	5,451.4	5,073.3
Accumulated other comprehensive income	367.5	251.4
Total Common Shareholders’ Equity	$ 8,693.1	$ 7,825.3
Total Liabilities and Shareholders’ Equity	$13,249.6	$12,442.7

Answer 1

	2011	2010	Difference	Operating	Investing	Financing
ASSETS:
Current Assets
Cash and equivalents	2,291.10	2,133.90	157.2	0	0	0
Short-term investments	1164.2	642.2	522	-522
Account receivable	2,883.90	2,795.30	88.6	-88.6
Inventory	2,357.00	2,438.40	-81.4	81.4
Prepaid expenses and other assets	765.6	602.3	163.3	-163.3
Deferred income taxes, net	272.4	227.2	45.2	-45.2
Total Current Assets	9,734.00	8,839.30	894.7
Property and equipment, gross	4,255.70	4,103.00	152.7		-152.7
Accumulated depreciation	-2,221.90	-2,298.00	76.1	76.1
Property and equipment, net	1,957.70	1,891.10	66.6
Identifiable intangible assets	467.4	743.1	-275.7		275.7
Good will	193.5	448.8	-255.3		255.3
Deferred income taxes and other assets	897	520.4	376.6	-376.6
Total Assets	13,249.60	12,442.70	806.9
			0
Liabilities and Stockholders’ Equity			0
Current Liability :			0
Current portion of long-term debt	32	6.3	25.7	25.7
Note Payable	342.9	177.7	165.2	165.2
Account Payable	1,031.90	1,287.60	-255.7	-255.7
Accrued liabilities	1,783.90	1,761.90	22	22
Income taxes payable	86.3	88	-1.7	-1.7
Total Current Liabilities	3,277.00	3,321.50	-44.5
Long term debt	437.2	441.1	-3.9			-3.9
Deferred taxes and other long-term liabilities	842	854.5	-12.5	-12.5
Total Liabilities	4,556.20	4,617.10	-60.9
Redeemable preferred stock	0.3	0.3	0
Common Shareholders’ Equity			0
Common stock	2.8	2.8	0	0	0	0
Capital in excess of stated value	2,781.40	2,497.80	283.6
Retained earnings	5,451.40	5,073.30	378.1	378.1
Accumulated other comprehensive income	367.5	251.4	116.1	0	0	0
Total Common Shareholders’ Equity	8,693.10	7,825.30	867.8
Total Liabilities and Shareholders’ Equity	13,249.60	12,442.70	806.9