Interpreting statement of cash flow relations Exhibit 5.38 presents statements of cash flow for eight companies for the same year:
a. American Airlines (airline transportation)
b. American Home Products (pharmaceuticals)
c. Interpublic Group (advertising and other marketing services)
d. Procter & Gamble (consumer products)
e. Reebok (athletic shoes)
f. Texas Instruments (electronics)
g. Limited Brands (specialty retailing)
h. Upjohn (pharmaceuticals)
Discuss the relation between net income and cash flow from operations, and the pattern of cash flows from operating, investing, and financing activities for eachfirm.

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Statements of Cash Flows for Selected Companies (all dollar amounts in millions) (Problem 44) EXHIBIT 5.38 American Home Products American Airlinos Intarpublic Group Procter & Gamble Texcas Instruments Limitad Brands Raabok Upjohn Operations $ (10) $ 1,528 $ 125 Not Incomo (Los) Deprociation . Other Addbacks (Subtractions) $ 254 $ 455 $ 491 $2,211 65 1,223 306 1,134 37 247 175 (4) (5) (0) (197) 166 71 23 196 (Incroase) Dacrsase in Rocecivables (66) (102) 37 14 40 (Incrose) Decrsase in Imvantories (27) (157) (74) (82) (60) (21) 16 25 Increasa (Decrease) in Payables . Incrsane (Decreasa) in Othar Curment Liabilities 330 34 325 59 98 35 118 43 (185) $ 1,902 (15) (55) (2) (11) 54 112 110 Cash Hlom from Oparations s 203 $ 3,640 1,532 $ 173 $ 710 $ 1,377 $ 754 Investing Capital Expenditures (ner) Sala (Acquisition) of Markatable Socuritios. Salo (Acquisition) of Other Businessas. Other Investing Cash Row from Investing.. s (473) $ 70) $ (62) $(2,080) S(1.841) S(1,076) (47) $(430) stzz4) (2a7) 290 24 23 (00) (0.161) (295) 308 (5) S(9,615) (85) (1) S(204) 36 105 S (0) S(400) S(1,754) S(161) S12,0Om) S(1,123) Financing Increasa (Decrnase) in Short-Term Borrowing Incrsama in Long-Tarm Deht.. Incsasa in Capital Stock. Decrsasa in Long Tam Dobt. Acquisition of Troasury Stock $ (281) $ (180) $ 1) S B.640 S(322) $ 37 $ 35 T30 42 414 150 15 110 1,081 38 19 36 13 17 (1,069) (15) (1) (797) (14) (940) (8a) (46) (32) (264) (314) (37) (112) (903) Dividands (40) (36) (25) (79) (102) Other Financing Cash Alow from Financing. Change in Cash .. Cash, Hoginning of Yaar Cash, End of Yar (14) (12) $(102) 82 11 1. 37 $ 7472 $ (241) S(1,500) $ (53) $(257) S(285) $ 395 %24 $ 36 $7 $ 221 18 51 356 1,937 256 $ 292 2,322 $ 2,173 79 34 $ 41 281 45 404 S B4 $ 1,696 %$ 502 63