Presented below is cash flow information for two competitors for 2015_____fizer, Inc., and Johnson & Johnson (amounts in millions):

Describe the cash management strategy of each company by identifying the key sources and uses of cash by each firm. Calculate the change in the cash balance for each firm. Explain why cash flow from operations is greater than operating profit for both firms.

Transcribed Image Text:

Company Pfizer, Inc.... Johnson & Johnson. Operating Profit Cash Flow From Operations Investing Financing $ 6,986 15,409 $14,512 $(2,980) $(11,233) 19,279 (7,735) (12,335)