• Operating Cash Flows increased 44.7% from $239.22m in 2013 to $338.94m in 2014 due to receipts from customers (new store openings) and overall debt levels was lower compared with past period so it reduced interest & other costs of finance. Besides that, Harvey Norman had to need more money in order to pay to suppliers & employees, partly due to stock requirements of new overseas stores and increase in income taxes paid. Consequently, Harvey Norman gain sufficient positive cash flow to maintain and grow its operations.
• Investing cash flows decreased by $95.06m (45.7%) from ($208.18m) in 2013 to ($113.12m) in 2014 because Harvey Norman decreased around $54.07m to invest for plant, equipment, intangibles, investment properties and purchases of property. In addition, sale of listed securities reduced account to $10.86m in 2014.
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Harvey Norman spent $22.62m to buy remaining shareholding from Pertama Holdings Pte Limited and $122.86m net repayment of Syndicated Facility Agreement. Besides that, the company spent more $21.25m to pay dividends but increased $31.76m in loans that received from related parties. As results, Harvey Norman increased negative cash flow in financing activities; it includes spending cash to purchase stocks, to pay down debt, to pay interest on debt and to pay dividends to shareholders which investors can be glad to accept.
• Cash and cash equivalents: However cash and cash equivalents decreased slightly (7.5%) million from $124.57m in 2013 to $115.17m in 2014 due to cash used in connection with the business combination, buying stocks, payment to suppliers & employees, dividends and interest on debt, Harvey Norman know how to make good use of cash just sitting around that they able to get a better return on your cash and be more profitable in the
• Investing cash flows decreased by $95.06m (45.7%) from ($208.18m) in 2013 to ($113.12m) in 2014 because Harvey Norman decreased around $54.07m to invest for plant, equipment, intangibles, investment properties and purchases of property. In addition, sale of listed securities reduced account to $10.86m in 2014.
• …show more content…
Harvey Norman spent $22.62m to buy remaining shareholding from Pertama Holdings Pte Limited and $122.86m net repayment of Syndicated Facility Agreement. Besides that, the company spent more $21.25m to pay dividends but increased $31.76m in loans that received from related parties. As results, Harvey Norman increased negative cash flow in financing activities; it includes spending cash to purchase stocks, to pay down debt, to pay interest on debt and to pay dividends to shareholders which investors can be glad to accept.
• Cash and cash equivalents: However cash and cash equivalents decreased slightly (7.5%) million from $124.57m in 2013 to $115.17m in 2014 due to cash used in connection with the business combination, buying stocks, payment to suppliers & employees, dividends and interest on debt, Harvey Norman know how to make good use of cash just sitting around that they able to get a better return on your cash and be more profitable in the