CASH FLOW Assignment Example | Topics and Well Written Essays - 750 words

CASH FLOW - Assignment ExampleNet earnings plus added back depreciation have contributed to the bulk of cash flow from operating activities, amounting to 3,883+1,682= $5,565 million. Increases/decreases in inventory, receivables, accounts payable, and other miscellaneous items have contributed the remaining $1,068M. Thus the increase has come mostly from the profits earned during the year. Out of the increase realized through operating activities, $1,129M have been used in investing activities, the major portion having been invested in capital expenditures. A small part has been accounted by sale of assets and property, and from sale of business. Financing activities have accounted for $4,048M of the outflow from the total of $6,651M contributed by operating activities. The bulk of this amount has gone in repurchase of stocks and in payment of dividends. Lowe’sThe increase in cash and cash equivalents during the year 2011 was $364 million.