Refer to Walgreens' statement of cash flows shown in the chapter opener on page 580 and answer the following questions for the most recent year.
Required
1. Which method, direct or indirect, does Walgreens use in preparing the Operating Activities section of its statement of cash flows? Explain how you know which method is being used.
2. By what amount does total cash provided by operating activities differ from net earnings? What are the two largest adjustments to reconcile the two numbers? Explain the nature of these adjustments. Why are both added?
3. What is the largest source of cash in the Investing Activities section of the statement? What is the largest use in this section? What was the other large use of cash in this section?
4. What is the largest source of cash in the Financing Activities section of the statement? What is the largest use of cash in this section?