Reporting and Interpreting Cash Flows from Investing and Financing Activities with Discussion of Management Strategy - Gibraltar Industries is a Buffalo, New York–based manufacturer of high-value-added steel products. In a recent year, it reported the following activities:
Acquisitions (investments in other companies)
($8,724)
Decrease in inventories
1,770
Depreciation and amortization
33,907
Long-term debt reduction
-185,567
Net cash provided by operating activities
107,874
Net income
24,068
Net proceeds from issuance of common stock
250
Net proceeds from sale of property and equipment
2,692
Payment of dividends
-5,985
Proceeds from long-term debt
53,439
Proceeds from sale of other equity investments
34,701
Purchases of property, plant, and equipment
-21,595
Required:
1. Based on this information, present the cash flows from investing and financing activities sections of the cash flow statement.
2. Compute the capital acquisitions ratio. What does the ratio tell you about Gibraltar’s ability to finance purchases of property, plant, and equipment with cash provided by operating activities?
3. What do you think was Gibraltar management’s plan for the use of the cash generated by selling other equity investments?