11. Which is higher, net earnings or operating cash flows? Which line items is the biggest...

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11. Which is higher, net earnings or operating cash flows? Which line items is the biggest reason for this difference? Explain why. 12. What is the largest investing cash flow and the largest financing cash flow reported by the company for the year Consolidated Statements of Cash Flows (millions) Operating activities Net earnings Eamings from discontinued operations, net of tax Net earnings from continuing operations Adjustments to reconcile net earnings to cash provided by operations: Depreciation and amortization Share-based compensation expense Deferred income taxes Gain on sale Loss on debt extinguishment Noncash (gains)/losses and other, net Changes in operating accounts: Inventory Other assets Accounts payable Accrued and other liabilities Cash provided by operating activities-continuing operations Cash provided by operating activities-discontinued operations Cash provided by operations Investing activities Expenditures for property and equipment Proceeds from disposal of property and equipment Proceeds from sale of businesses Cash paid for acquisitions, net of cash assumed Other investments Cash (required for)/provided by investing activities-continuing operations Cash provided by investing activities-discontinued operations Cash (required for)/provided by investing activities Financing activities Additions to long-term debt Reductions of long-term debt Dividends paid Repurchase of stock Stock option exercises Cash required for financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Supplemental Information Interest paid, net of capitalized interest Income taxes paid / (refunded) Property and equipment acquired through capital lease obligations See accompanying Notes to Consolidated Financial Statements. $ $ 2017 2,934 $ 6 2,928 2,445 112 (192) 123 192 (348) (168) 1,307 450 6,849 74 6,923 (2,533) 31 (518) (55) (3,075) (3,075) 739 (2,180) (1.338) (1,046) 108 (3,717) 131 2,512 2,643 S 678 S 934 173 2016 2,737 S 68 2,669 2,298 113 41 - 422 (21) 293 30 (166) (350) 5,329 107 5,436 (1,547) 46 28 (1,473) C (1.473) 1,514 238 1,977 (2,641) (1,348) (3,706) 221 (5,497) (1,534) 4,046 2,512 S 999 $ 3,363 42 3,321 2,213 115 (322) (620) 2015 (316) 221 (362) 947 5,254 704 5,958 (1,438) 28 1,875 24 489 19 508 57 (85) (1,362) (3,483) 300 (4,630) 1,836 2,210 4,046 604 (127) 126 11. Which is higher, net earnings or operating cash flows? Which line items is the biggest reason for this difference? Explain why. 12. What is the largest investing cash flow and the largest financing cash flow reported by the company for the year Consolidated Statements of Cash Flows (millions) Operating activities Net earnings Eamings from discontinued operations, net of tax Net earnings from continuing operations Adjustments to reconcile net earnings to cash provided by operations: Depreciation and amortization Share-based compensation expense Deferred income taxes Gain on sale Loss on debt extinguishment Noncash (gains)/losses and other, net Changes in operating accounts: Inventory Other assets Accounts payable Accrued and other liabilities Cash provided by operating activities-continuing operations Cash provided by operating activities-discontinued operations Cash provided by operations Investing activities Expenditures for property and equipment Proceeds from disposal of property and equipment Proceeds from sale of businesses Cash paid for acquisitions, net of cash assumed Other investments Cash (required for)/provided by investing activities-continuing operations Cash provided by investing activities-discontinued operations Cash (required for)/provided by investing activities Financing activities Additions to long-term debt Reductions of long-term debt Dividends paid Repurchase of stock Stock option exercises Cash required for financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Supplemental Information Interest paid, net of capitalized interest Income taxes paid / (refunded) Property and equipment acquired through capital lease obligations See accompanying Notes to Consolidated Financial Statements. $ $ 2017 2,934 $ 6 2,928 2,445 112 (192) 123 192 (348) (168) 1,307 450 6,849 74 6,923 (2,533) 31 (518) (55) (3,075) (3,075) 739 (2,180) (1.338) (1,046) 108 (3,717) 131 2,512 2,643 S 678 S 934 173 2016 2,737 S 68 2,669 2,298 113 41 - 422 (21) 293 30 (166) (350) 5,329 107 5,436 (1,547) 46 28 (1,473) C (1.473) 1,514 238 1,977 (2,641) (1,348) (3,706) 221 (5,497) (1,534) 4,046 2,512 S 999 $ 3,363 42 3,321 2,213 115 (322) (620) 2015 (316) 221 (362) 947 5,254 704 5,958 (1,438) 28 1,875 24 489 19 508 57 (85) (1,362) (3,483) 300 (4,630) 1,836 2,210 4,046 604 (127) 126

Answer rating: 100% (QA)

Analysis of Consolidated Statements of Cash Flows 11 Net Earnings vs Operating Cash Flows Net earnings are higher than operating cash flows for the ye... View the full answer