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You are researching Ridge Manufacturing and have found the following accounting statement of cash flows...

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Accounting

You are researching Ridge Manufacturing and have found the following accounting statement of cash flows for the most recent year. You also know that the company paid $81 million in current taxes and had an interest expense of $38 million.

Use the accounting statement of cash flows to construct the financial statement of cash flows.

RIDGE MANUFACTURING

Statement of Cash Flows

($ in millions)

Cash flow from operating activities

Net income $187

Depreciation 74

Deferred taxes 11

Changes in operating current assets and liabilities:

Accounts receivable $12

Inventories 15

Accounts payable 11

Accrued expenses $6

Other 2

Total cash flow from operations $282

Investing activities

Acquisition of fixed assets $194

Sale of fixed assets 19

Total cash flow from investing activities $175

Cash flow from financing activities

Retirement of long-term debt $145

Proceeds from long-term debt sales 110

Dividends 67

Repurchase of stock 32

Proceeds from new stock issue 39

Total cash flow from financing activities $95

Change in cash (on balance sheet) $ 12

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