Refer to Walgreens Boots Alliance’s statement of cash flows shown in the chapter opener on page 555 and answer the following questions for the most recent year.

Required
1. Which method, direct or indirect, does Walgreens Boots Alliance use in preparing the Operating Activities section of its statement of cash flows? Explain how you know which method is being used.
2. By what amount does net cash provided by operating activities differ from net earnings? What is the largest adjustment to reconcile the two numbers? Explain the nature of this adjustment. Why is it added?
3. What is the largest source of cash in the Investing Activities section of the statement? What is the largest use in this section? What is the next largest use of cash in this section?
4. What is the largest source of cash in the Financing Activities section of the statement? What is the largest use of cash in this section?

Walgreens Boots Alliance’s Statement: