Question

(In millions)
		Year Ended December 31,
	2018	2017
Cash flows from operating activities
Net income	$             22,112	$                                     15,934
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization	4,315	3,025
Share-based compensation	4,152	3,723
Deferred income taxes	286	(377)
Other	(64)	24
Changes in assets and liabilities:
Accounts receivable	(1,892)	(1,609)
Prepaid expenses and other current assets	(690)	(192)
Other assets	(159)	154
Accounts payable	221	43
Partners payable	157	95
Accrued expenses and other current liabilities	1,417	309
Deferred revenue and deposits	53	4
Other liabilities	(634)	3,083
Net cash provided by operating activities	29,274	24,216
Cash flows from investing activities
Purchases of property and equipment, net	(13,915)	(6,733)
Purchases of marketable securities	(14,656)	(25,682)
Sales of marketable securities	12,358	9,444
Maturities of marketable securities	4,772	2,988
Acquisitions of businesses, net of cash	(137)	(122)
acquired, and purchases of intangible assets
Other investing activities, net	(25)	(13)
Net cash used in investing activities	(11,603)	(20,118)
Cash flows from financing activities
Taxes paid related to net share settlement of	(3,208)	(3,246)
equity awards
Principal payments on capital lease and other	-	-
financing obligations
Repurchases of Class A common stock	(12,879)	(1,976)
Net change in overdraft in cash pooling entities	500	-
Other financing activities, net	15	(13)
Net cash used in financing activities	(15,572)	(5,235)
Effect of exchange rate changes on cash, cash	(179)	232
equivalents, and restricted cash
Net increase (decrease) in cash, cash	1,920	(905)
equivalents, and restricted cash
Cash, cash equivalents, and restricted cash at	8,204	9,109
beginning of the period
Cash, cash equivalents, and restricted cash at	$             10,124	$                                      8,204
end of the period
Reconciliation of cash, cash equivalents, and
restricted cash to the consolidated balance
sheets
Cash and cash equivalents	$             10,019	$                                      8,079
Restricted cash, included in prepaid expenses
and other current assets	10	18
Restricted cash, included in other assets	95	107
Total cash, cash equivalents, and restricted
cash	$             10,124	$                                      8,204

• Looking over the cash flow statement given above - please post what you observe by looking at this statement (all the numbers in millions) that you think would be of interest to potential investors. Where does their cash come from and how do they use it? Also, take a guess as to which company reported this statement

Answer 1

Net cash provided by operating activities is positive which shows the company earned the positive operating cash flows. The operating cash flows would be increased from $24,216 to $29,274. As an investor, I would like positive operating cash flows.

Net cash used in investing activities is negative that indicates the company tries to buy the property and equipment to grow the business. This expenditure helps the company to earn a higher net income. The company's net income was increased from $3,025 to $2018. As an investor, I would like a profitable company.

Net cash used in financing activities is $15,572 which mostly due to the repurchases of Class A common stock. The company was reported its own shares. This may be due to the company to have higher cash flows.

Overall, I would like this company as a potential investor's point of view.