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Using the information below calculate General Electric's Cash Flow From Assets for 2022:

Dividends 536
Interest 528
Taxes 418
2021 Fixed assets 1150
2022 Fixed assets 1300
2021 New borrowings 800
2022 New borrowing 1100
2021 New equity 700
2022 New equity 950

1 Answer

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Final answer:

General Electric's approximate Cash Flow from Assets for 2022 cannot be accurately calculated due to missing information on cash flow from operations. However, using the limited data provided, which includes dividends, interest, taxes, new borrowings, and fixed assets, the calculation is adjusted resulting in an approximate cash flow of -$1332 million.

Step-by-step explanation:

To calculate General Electric's Cash Flow from Assets for 2022, we need to assess the company's operating cash flow, capital expenditures, and net borrowing. The operating cash flow can be calculated using the income or loss from operations plus any non-cash items and changes in working capital. However, in this case, we are not provided with some of these essential details directly (such as net income or operating cash flows), leaving us unable to compute the operating cash flow.

Nevertheless, the capital expenditures (CapEx) can be computed by looking at the change in fixed assets. For General Electric, CapEx would be the difference in fixed assets from 2021 to 2022 which is $1300 million - $1150 million = $150 million.

Net borrowing is the difference between new borrowings for the two years. In 2022, General Electric has new borrowings of $1100 million compared to $800 million in 2021, resulting in a net borrowing of $1100 million - $800 million = $300 million.

Lastly, without specific details on cash flow from operations, and considering only the data provided, we'll use dividends, interest, and taxes to make a rough estimate of cash flow (although this would generally not be the standard approach for a truly accurate calculation). Dividends paid are $536 million, interest paid is $528 million, and taxes paid are $418 million, resulting in an outflow of $536 million + $528 million + $418 million = $1482 million.

Thus, General Electric's approximate Cash Flow from Assets for 2022, using the limited data provided, would be calculated as (Net Borrowing - CapEx - Cash outflow from dividends, interest, and taxes), which leads to $300 million - $150 million - $1482 million = -$1332 million.

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