Discussions
To participate in the following discussions, go to this week's Discussion link in the left navigation.

    The Statement of Cash Flows

    Referencing this week’s readings and lecture, describe the following terms as they relate to the statement of cash flows: cash, operating activities, investing activities, and financing activities. What can creditors, investors, and other users glean from an analysis of the statement of cash flows?

    Respond to at least two of your classmates’ posts.
    Analyzing the Statement of Cash Flows

    Using the table below, explain the difference between net income and cash flow from operating activities for Techno in 2009 and analyze their cash flows for 2008 and 2009. 

(in thousands) 	2009 	2008
Net income 	$ 316,354 	$ 242,329
Noncash charges (credits) to income 		
Depreciation and amortization 	68,156 	62,591
Deferred taxes 	15,394 	22,814
	$ 399,904 	$ 327,734
Cash Provided (Used) by Operating Assets and Liabilities: 		
Receivables 	(288,174) 	(49,704)
Inventories 	(159,419) 	(145,554)
Other current assets 	(1,470) 	3,832
Accounts payable, accrued liabilities 	73,684 	41,079
Total Cash Provided by Operations 	$ 24,525 	$ 177,387
Investment activities 		
Additions to plant and equipment 	(94,1760) 	(93,136)
Other investment activities 	14,408 	(34,771)
Net investment activities 	($ 79,768) 	($ 127,907)
Financing activities 		
Purchases of treasury stock 	(45,854) 	(39,267)
Dividends paid 	(49,290) 	(22,523)
Net changes in short-term borrowing 	125,248 	45,067
Additions to long-term borrowings 	135,249 	4,610
Repayments of long-term borrowings 		(250,564)
Net financing activities 	$ 165,353 	($ 262,677)
Increase (decrease) in cash 	$ 110,110 	($ 213,197)
Beginning cash balance 	78,114 	291,311
Ending cash balance 	$ 188,224 	$ 78,114

    Respond to at least two of your classmates’ posts.