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Question: Avnet is one of the world’s

Avnet is one of the world’s largest value-added distributors of electronic componenets, enterprise computer and storage products, IT services and embedded subsystems. Avnet creates a vital link in the technology supply chain that connects the world’s leading electronic component and computer product manufacturers and software developers with a global customer base of original equipment manufacturers, electronic manufacturing services providers, original design manufacturers, and valueadded resellers8.
Avnet is one of the world’s largest value-added distributors of electronic componenets, enterprise computer and storage products, IT services and embedded subsystems. Avnet creates a vital link in the technology supply chain that connects the world’s leading electronic component and computer product manufacturers and software developers with a global customer base of original equipment manufacturers, electronic manufacturing services providers, original design manufacturers, and valueadded resellers8.


Additional cash flow information (Note 15)
See notes to consolidated financial statements.

Required:
 (a) Using the Consolidated Statements of Cash Flows for Avnet, prepare a summary analysis for all three years.
(b) Write an analysis and interpretation of the cash flows for Avnet for all three years. Be sure to analyze the cash flows from operating activities, as well as the overall cash inflows and outflows for the firm.
(c) Evaluate the creditworthiness of Avnet based on only the cash flow statements.
(d) What information from the balance sheet would be useful to a creditor in determining whether to loan Avnet money?


Avnet is one of the world’s largest value-added distributors of electronic componenets, enterprise computer and storage products, IT services and embedded subsystems. Avnet creates a vital link in the technology supply chain that connects the world’s leading electronic component and computer product manufacturers and software developers with a global customer base of original equipment manufacturers, electronic manufacturing services providers, original design manufacturers, and valueadded resellers8.


Additional cash flow information (Note 15)
See notes to consolidated financial statements.

Required:
 (a) Using the Consolidated Statements of Cash Flows for Avnet, prepare a summary analysis for all three years.
(b) Write an analysis and interpretation of the cash flows for Avnet for all three years. Be sure to analyze the cash flows from operating activities, as well as the overall cash inflows and outflows for the firm.
(c) Evaluate the creditworthiness of Avnet based on only the cash flow statements.
(d) What information from the balance sheet would be useful to a creditor in determining whether to loan Avnet money?

Additional cash flow information (Note 15) See notes to consolidated financial statements. Required: (a) Using the Consolidated Statements of Cash Flows for Avnet, prepare a summary analysis for all three years. (b) Write an analysis and interpretation of the cash flows for Avnet for all three years. Be sure to analyze the cash flows from operating activities, as well as the overall cash inflows and outflows for the firm. (c) Evaluate the creditworthiness of Avnet based on only the cash flow statements. (d) What information from the balance sheet would be useful to a creditor in determining whether to loan Avnet money?





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Avnet, Inc. and Subsidiaries Consolidated Statements of Cash Flows Years Ended June 29, 2013 June 30, 2012 July 2, 2011 (Thousands) Cash flows from operating activities: Net income $ 450,073 $ 567,019 $ 669,069 Non-cash and other reconciling items: Depreciation and amortization Deferred income taxes (Note 9) Stock-based compensation (Note 12) Gain on bargain purchase and other (Note 2) Other, net (Note 15) 120,676 (10,019) 43,677 101,336 81,389 11,782 35,737 15,966 28,931 (31,011) (2,918) (22,715) 75,327 66,263 56,846 Changes in (net of effects from businesses acquired): Receivables (94,203) 225,667 72,267 133,178 (319,094) (136,852) (421,457) (321,939) Inventories Accounts payable Accrued expenses and other, net Net cash flows provided by operating activities (78,834) 165,185 (5,156) 26,804 696,197 528,718 278,079 Cash flows from financing activities: (Repayments of) borrowings under accounts receivable securitization program, net (Note 3) Issuance of notes in a public offering, net of issuance costs (Note 7) (310,000) 510,000 160,000 349,258 Repayment of notes (Note 7) (Repayments of) proceeds from bank debt, net (Note 7) (109,600) (179,861) 86,823 1,644 (Repayments of) proceeds from other debt, net (Note 7) Repurchases of common stock (Note 4) Other, net (Note 12) Net cash flows (used for) provided by financing activities Cash flows from investing activities: Purchases of property, plant and equipment Cash proceeds from sales of property, plant, and equipment Acquisitions of operations and investments, net of cash acquired (Note 2) Cash proceeds from divestiture activities (Note 2) Net cash flows used for investing (1,080) (1,007) 7,238 (207,192) 4,792 (318,333) 5,590 3,930 (344,083) 283,073 63,212 (97,379) (128,652) (148,707) 3,018 1,046 10,621 (262,306) (313,218) (690,997) 3,613 19,108 activities (353,054) (440,824) (809,975) Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents: - increase (decrease) - at beginning of year at end of year ЗА19 (39,437) 51,916 2,479 331,530 1,006,864 $1,009,343 675,334 $ 1,006,864 (416,768) 1,092,102 $ 675,334


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