For this question, refer to the information in Exhibits 4.1 and 4.7.

a. Based on the information presented in its statement of cash flows, what amount of revenues should CVS Health report in its 2017 income statement?

b. CVS Health reported retained earnings of $38,983 at the end of 2016. What amount of retained earnings did the company report in its 2017 balance sheet?

c. Why is "stock-based compensation" listed under "Adjustments necessary to reconcile net income to net cash provided by operating activities"?

d. Why does CVS Health list the "effect of exchange rate changes on cash and cash equivalents" in its statement of cash flows? What does this amount represent?

e. Using three bullet points, explain what CVS Health did with the $8 billion in cash that was provided by operating activities is 2017.

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cVS Health Corporation Cash Flow Statement EXHIBIT 4.1 cVS HEALTH CORPORATION Consolidated Statement of Cash Flows For the Fiscal Year Ended December 31, 2017 In millions 2017 Cash flows from operating activities Cash receipts from customers.... Cash paid for inventory and prescriptions dispensed by retail network phamacies Cash paid to other suppliers and employees. $176,594 (149.279) (15.348) Interest received.. 21 Interest paid. Income taxes paid.. Net cash provided by operating activities. ... Cash flows trom investing activities Purchases of properly and equipment Proceeds from sale-leaseback transactions. Proceeds from sale of property and equipment and other assets Acquisitions inet of cash acquired) and ather investments. (1,072) (2,909) 8,007 (1,918) 265 33 (1,287) (86) Purchase of available-for-sale investments ..... Maturities of available-for-sale investrments 61 Net cash used in investing activities. .. Cash flows from financing activities (2,932) Decrease in short-term debt . (598) Dividends paid .. . Proceads from exercise of stock options. Payments for taxes related to net share settlement of equity awards Repurchase of common stock.. (2,049) 329 (71) (4,361) Other...... (1) Net cash used in financing activities... Effect of exchange rate changes on cash and cash equivalents. Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the period.. (6,751) 1. (1,675) 3,371 Cash and cash equivalents at the end of the period. .. S 1,696