Exhibit 3.32 presents a statement of cash flows for Walmart for fiscal 2015, 2014, and 2013. This statement matches the Walmart statement of cash flows in Appendix A, and is an expanded version of the statement of cash flows for Walmart shown in Exhibit 1.21.

REQUIRED
a. Explain why depreciation and amortization appear as an addition when net income is converted to cash flow from operations.
b. For 2016, Walmart shows an adjustment for inventories of negative $703 million. However, on the balance sheet, inventories declined from $45,141 million to $44,469 million, a difference of $672 million. Explain the $703 million adjustment and offer examples of why the adjustment differs from the change in the inventory balance.
c. Estimate the amount of cash received from customers during 2016.
d. Discuss the relation between net income and cash flow from operations for each of the three years.
e. Discuss the relations among cash flows from operating, investing, and financing activities for each of the three years.

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Exhibit 1.21 (Continued) Proceeds from sales of property, plant, and equipment 727 570 635 Property, plant, and equipment acquired (13,115) (12,174) (11,477) Investments acquired Other investment transactions (138) 479 167 $(12,526) $(11,125) Net Cash Flow from Investing Activities Increase (Decrease) in short-term borrowing Increase (Decrease) in long-tem borowing Share repurchases-treasury stock Dividend payments Other financing activities Net Cash Flow from Financing Activities Effects of exchange rate changes on cash Net Change in Cash Cash and cash equivalents, beginning of year $(10,675) 911 (6,288) 1,235 2,104 1,270 (4,393) (6,683) (1,015) (4,112) (6,139) (6,185) (6,294) (2,558) (982) (2,853) $(10,789) $(15,071) $(16,122) (442) (514) $ 1,854 $ 7,281 $ 9,135 (1,022) $ (430) $ 9,135 $ 8,705 (500) $ 7,781 $ 7,281 Cash and cash equivalents, end of year