In 2006 Hewlett-Packard repurchased shares of common stock worth $5,241 million and made dividend payments of $894 million. Other financing activities raised $196 million, and Hewlett-Packard's total cash flow from financing was - $6,077 million. How much did the long-term debt accounts of Hewlett-Packard change? a. Increased $138 millionb. Decreased $138 millionc. Increased $836 milliond. Decreased $836 million

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Business

Rigoberto Vargas

16 July, 03:19

In 2006 Hewlett-Packard repurchased shares of common stock worth $5,241 million and made dividend payments of $894 million. Other financing activities raised $196 million, and Hewlett-Packard's total cash flow from financing was - $6,077 million. How much did the long-term debt accounts of Hewlett-Packard change? a. Increased $138 millionb. Decreased $138 millionc. Increased $836 milliond. Decreased $836 million

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Matteo Wood · Answer 1

B) Decreased $138 million

Explanation:

To determine the effects of long term debt accounts on HP's total cash flow form financing we can use the following formula:

HP's cash flow from financing = new shares issued - shares repurchased - dividend payments + cash flows related to long term debt account + income from other financing activities

-$6,077 = $0 - $5,241 - $894 + X + $196

-$6,077 = - $5,939 + X

-$138 = X

HP's long term debt accounts decreased by $138