NAME: KAVITHANA A/P R MOHAN

MATRIX NO.: 273213

SUBJECT CODE: BWFF2033
GROUP: G

EXERCISE TOPIC 2

1. Operating Cash Flow =​ ​Earnings Before Interest and Taxes (EBIT) + Depreciation -
Taxes
​= $ 694,000,000 + $ 65,000,000 - $ 212,000,000
= $ 547,000,000

2. Net Capital Spending = Ending Net Fixed Assets - Beginning Net Fixed Assets +
Depreciation
​= $ 1,709,000,000 - $ 1,644,000,000 + $ 65,000,000
= $ 130,000,000

3. Changes in NWC = Ending NWC - Beginning NWC

= (ending current asset - current liability) - (beginning current
asset - current liability)
= ($ 1,403,000,000 - $ 389,000,000) - ($ 1,112,000,000 -
$ 428,000,000)
= $ 1,014,000,000 - $ 684,000,000
= $ 330,000,000

4. CFFA = Operating Cash Flow - Net Capital Spending - Changes in NWC

​= $ 547,000,000 - $ 130,000,000 - $ 330,000,000
= $ 87,000,000

5. Cash Flow to Creditors = Interest Paid - Net New Borrowing

= Interest Paid - (Ending Long term Debt - Beginning Long
term Debt)
= $ 70,000,000 - ($ 454,000,000 - $ 408,000,000)
= $ 70,000,000 - 46,000,000
= $ 24,000,000

6. Cash Flow to Stockholders = Dividends Paid - Net New Equity Raised

= Dividends Paid - (Ending Common Stock and Paid-in
​ ​Surplus - Beginning Common Stock and Paid-in
Surplus)
= $ 103,000,000 - ($ 640,000,000 - $ 600,000,000)
= $ 103,000,000 - $ 40,000,000
= $ 63,000,000
7. CFFA = Cash Flow to Creditors + Cash Flow to Stockholders
​= $ 24,000,000 + $ 63,000,000
= $ 87,000,000