Market Star is a marketing services firm that creates advertising copy for clients and places the advertising in television, magazines, and other media. Accounts receivable represent amounts owed by clients, and accounts payable represent amounts payable to various media. Market Star has purchased other marketing services firms in recent years. Selected data for Market Star for three recent years appear next (amounts in millions of US$):

a. Prepare a comparative statement of cash flows for Market Star for the three years. Use the indirect method of computing cash flow from operations.
b. Discuss the relation between net income and cash flow from operations and the pattern of cash flows from operating, investing, and financing activities during the threeyears.

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2013 499 226 514 98 125 277 420 150 885 122 599 (187) 2012 363 196 648 13 (10) 786 278 130 643 104 83 (252) 2011 $279 164 238 35 64 330 70 115 469 Net Income . Depreciation and Amortization Expense . . . . . Increase (Decrease) in Accounts Payable . .. Acquisition of Investments in Securities (noncurrent). .. Dividends Paid 208 42