Download Pfizer's 2015 annual report (search Pfizer Investor Relations). Locate the firm's consolidated statement of cash flows and answer the following:
∙ Does the firm employ the direct or indirect method of accounting for operating cash flows?
∙ Why does the firm account for the changes in balances in operating accounts (e.g., accounts receivable, inventory, accounts payable) in determining operating cash flows as net of acquisitions and divestitures?
∙ Describe the accounting for cash paid for business acquisitions in the statement of cash flows.
∙ Describe the accounting for any noncontrolling subsidiary interest and any other business combination-related items in the consolidated statement of cash flows.