The 2015 annual report of Bristol-Myers Squibb (BMS) discloses the following amounts included within “other (income)/expense” on its consolidated statement of earnings:

Assume that on the company’s statement of cash flow, the following amounts appear as a subtraction from net earnings under the cash flow from operating activities:

Calculate the amount of cash dividends received by BMS from its affiliates in 2015, 2014, and 2013. Assume that BMS neither sold nor purchased any equity interest in its affiliates in 2015, 2014, and 2013. What happened to the balance sheet value of the “investment in equity affiliates” account in 2015, 2014, and 2013?

Transcribed Image Text:

(in millions) Equity in net income of affiliates... 2015 2014 2013 $83 $107 $166