Excerpts from Smart Pro Inc.'s statement of cash flows appear as follows:

Requirement
As the chief executive officer of Smart Pro Inc., your duty is to write the management letter to your shareholders to explain Smart Pro's investing activities during 2017. Compare the company's level of investment with the preceding year, and indicate the major way the company financed its investments during 2017. Net income for 2017 was $1,291 million?

Transcribed Image Text:

Smart Pro Inc. 1 Consolidated Statement of Cash Flows (Partial, Adapted) For the Years Ended December 31 2 (in millions) 3 Cash and cash equivalents, beginning of year 4 Net cash provided by operating activities 5 Cash flows provided by (used for) investing activities 2017 2016 $ 2,976$ 3,695 12,827 8,654 Additions to property, plant, and equipment (7,309) (6,674) 3) ,s1) (7,141) (17,188) 16,144 195) (10,035) 7 Acquisitions o Purchases of investments Sales of investments 15,120 10 Net cash (used for) investing activities 11 Cash flows provided by (used for) financing activities: 12 13 Repayment of long-term debt 14 Proceeds from issuance of shares 15 Borrowing 215 (46) 797 4,008 (4,007) (470) 329 (10) 762 Repurchase of common shares (538) 17 Net cash (used for) financing activities 18 Net increase (decrease) in cash and cash equivalents 19 Cash and cash equivalents, end of year 20 (719) 4,994 79702,916