Patterns of Corporate Financing
TABLE 14-1 Sources and uses of funds in nonfinancial corporations expressed as percentage of eachyear's total investment.
Uses.'^1988198919901991199219931994199519961997
- Investment in net1. Capital expenditures 2674 1387 1387 982 2773 1989 9220 7723 8119 8317
working capital and otherusesa - Total investmentSources: 100 100 100 100 100 100 100 100 100 100
- Internally generatedcash b 81 87 90 112 88 88 86 78 89 85
- Financial deficit(5 - 4); equals required 19 13 10 -12 12 12 14 22 11 15
external financingFinancial deficit covered
by:6. Net stock issues -26 -27 -14 3 6 4 -7 -8 -9 -14 - Net increase in debt 45 40 24 -14 7 8 21 30 20 30
a Changes in short-term borrowing are shown under net increase in debt. "Other uses" are net of any increase inmiscellaneous liabilities and any statistical discrepancy.
b Net income plus depreciation less cash dividends paid to stockholders
Source: Board of Governors of the Federal Reserve System, Division of Research and Statistics, Flow of FundsAccounts, various issues.