NEW TOPIC Corporation Balance Sheet NEW TOPIC Corporation Ba

NEW TOPIC Corporation Balance Sheet NEW TOPIC Corporation Balance Sheet (in SMillions) Assets Liabilities & Owners\' Equity Last Current Year Year Last Current Year Year Current Assets Current Liabilities s 213 $ 281 Accounts Payable 385 S 445 S 586 $ 646 Long-Term Debt 2998 s 3.015 $ 3,584 S 3,661 s 1966 S 2,789 Cash Accounts Receivable 457 461 Notes Payable Inventory 665 554 Total Total 1,335 S 1,296 Fixed Assets S 5,124 6.428 Total Liabilities PP&E; Accumulated Dep. 909 1274 Net PP&E; $ 4215 S 5.154 Owners\'Equity 5550 6450 Total Liab. And Equity 550 64 Total Assets NEW TOPIC Corporation Income Statement Current Year NEW TOPIC Corporation Current Year Income Statement (in SMillions $ 2,877 Sales Cost of Goods Sold Depreciation Earmings Before Interes and Taxes 1,012 $ 1.500 $ 1,500 Eamings Before Taxes Taxes Net Income Retained Earnings Dividends S 823 S 157 at is the cash flow from financing in millions? Assume that the only component of the owners\' equity is retained earnings. Wh $17

Solution

Solution - Calculation of Cash Flow from Financing Activities

Financing Activities - These are the transactions with Creditors and Investors. The purpose of the transaction is the expansion of company operations. Such Transactions are issuing capital, Long term borrowings, Interest and Dividend payments.

Amount

(In Millions)

Particulars	Amount (In Millions)
Cash Flow From Financing Activities
Payment Of Dividends	($157)
Acceptance of Long term Debt ($3015 - $2998)	$17
Total Cash Used in Financing Activities (IN MILLION)	($140)