Abdullah Company reported the following information on its statement of cash flows.
|
(In millions) |
2005 |
2004 |
2003 |
|
Net cash provided by operating activities |
$3,195 |
$2,869 |
$2,688 |
|
Net cash from (used by) investing activities: |
|||
|
Capital expenditures |
2,661 |
1,358 |
523 |
|
Sales of equipment and property |
293 |
305 |
257 |
|
Investments in other companies |
272 |
0 |
0 |
|
Other |
392 |
627 |
924 |
|
Total investing activities |
($2,248) |
($1,680) |
($1,190) |
|
Net cash from (used by) financing activities: |
|||
|
Payments on long term debt |
547 |
648 |
2,130 |
|
Repurchase of common stock |
994 |
740 |
0 |
|
Other |
627 |
200 |
614 |
|
Total financing activities |
($914) |
($1,188) |
($1,516) |
Interest expense for the past three years has been $372, $420, and $514. The company does not pay dividends. What information about the company’s future prospects is communicated by its investing and financing activities during this period? Does the company appear to be a good prospect for new debt financing to be spent on additional capital assets?