Question

Use the information in the provided Income Statement and Balance Sheet to create the 2017 Statement of Cash Flows and ratio calculations for 2017.

Income Statement For the Years Ended December 31, 2017 and 2016 $ in millions 2016 2017 Revenue Net sales Cost of merchandise sold $27,528 37,043 20,807 16,236 16,099 11,429 Gross Profit Operating Expenses Selling, general and administrative Depreciation Amortization 5,757 1,223 124 4,449 5,985 2,499 124 7,752 Operating income Interest expense, net Gain/(Loss) on sale of property & equip 273 (149) 4,027 114 Income before income taxes 7,695 1,762 $ 5,933 Provision for income taxes 1,366 Net income $2,661

Answer 1

Statement of Cash Flows
For the Year Ended December 31, 2017
$ in millions
Cash Flows from Operating Activities
Net income		5933
Adjustments to reconcile net income to net cash provided by operations:
Depreciation expense	2499
Amortization expense	124
Gain on sale of property & equip.	-114
Increase in Accounts Receivable	-130
Increase in Merchandise Inventories	-361
Increase in Other current assets	-24
Increase in Accounts payable	216
Increase in Accrued liabilities	52
Decrease in Income taxes payable	-26	2236
Net cash provided by operating activities		8169
Cash Flows from Investing Activities
Sale proceeds of equipment	2265
Purchase of equipment	-7545
Net cash used by investing activities		-5280
Cash Flows from Financing Activities
Borrowings on new debt	296
Repayment of debt obligations	-450
Issuance of Common stock	764
Purchase of Treasury stock	-2547
Payment of cash dividends	-44
Net cash used by financing activities		-1981
Net increase (decrease) in cash		908
Cash and cash equivalents, December 31, 2016		1610
Cash and cash equivalents, December 31, 2017		2518