Crash Course in Accounting and Financial Statement Analysis, Second Edition

Cash Flow Statement

The cash flow statement is a summary of the cash inflows and out-flows of a business over a specified period of time (a fiscal year) (Exhibit 4.6).

Exhibit 4.6. The Cash Flow Statement Summarizes the Movement of a Company’s Cash Over an Entire Fiscal Year

In millions		fiscal year ended Dec. 31, 2005 (52 weeks)	fiscal year ended Jan. 1, 2005 (52 weeks)	fiscal year ended Jan. 3, 2004 (53 weeks)
Cash flows from operating activities:
	Cash receipts from sales	$ 36,923.1	$ 30,545.8	$ 26,276.9
	Cash paid for inventory	(26,403.9)	(22,469.2)	(19,262.9)
	Cash paid to other suppliers and employees	(8,186.7)	(6,528.5)	(5,475.5)
	Interest and dividends received	6.5	5.7	5.7
	Interest paid	(135.9)	(70.4)	(64.9)
	Income taxes paid	(591.0)	(569.2)	(510.4)
Net cash provided by operating activities		1,612.1	914.2	968.9
Cash flows from investing activities:
	Additions to property and equipment	(1,495.4)	(1,347.7)	(1,121.7)
	Proceeds from sale-leaseback transactions	539.9	496.6	487.8
	Acquisitions, net of cash and investments	12.1	(2,293.7)	(133.1)
	Cash outflow from hedging activities	—	(32.8)	—
	Proceeds from sale or disposal of assets	31.8	14.3	13.4
Net cash used in investing activities		(911.6)	(3,163.3)	(753.6)
Cash flows from financing activities:
	Reductions in long-term debt	(10.5)	(301.5)	(0.8)
	Additions to long-term debt	16.5	1,204.1	—
	Proceeds from exercise of stock options	178.4	129.8	38.3
	Dividends paid	(131.6)	(119.8)	(105.2)
	Additions to/(reductions in) short-term debt	(632.2)	885.6	(4.8)
Net cash (used in) provided by financing activities ...