Question: 2. Common size statement analysis (5 points) a. Prepare a common size cash flow statement using net sales as the common size and keep 2

2. Common size statement analysis (5 points) a. Prepare a common size cash flow statement using net sales as the common size and keep 2 decimal places in the percentage, (for example, 12.43%). b. Are depreciation expenses and capital expenditure significant components in the cash flow statement percentagewise? Is that surprising? c. Percentage wise, is operating cash flowet sales higher than net income/sales?? Is that good? d. Do operating cash flows meet the needs of investment and distribution? Provide your comment(s) on the trend of the answer to this question?

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2. Common size statement analysis (5 points) a. Prepare a common size

cash flow statement using net sales as the common size and keep

2 decimal places in the percentage, (for example, 12.43%). b. Are depreciation

expenses and capital expenditure significant components in the cash flow statement percentagewise?

Is that surprising? c. Percentage wise, is operating cash flowet sales higher

than net income/sales?? Is that good? d. Do operating cash flows meet

$3 for the whole question or for each part??

Consolidated Results of Operations - USD (\$) shares in Millions, $ in Millions Sales and revenues: Sales of Machinery, Energy \& Transportation \begin{tabular}{|r|r|r|r|r|r|} \hline 2021 & 2020 & 2019 & 2018 & 2017 & 2016 \\ \hline & & & & & \\ \hline 42,676 & 35,773 & 44,147 & 52,142 & 52,694 & 63,068 \\ \hline 2,786 & 2,764 & 2,864 & 3,042 & 2,962 & 2,807 \\ \hline 45,462 & 38,537 & 47,011 & 55,184 & 55,656 & 65,875 \\ \hline & & & & & \\ \hline 31,049 & 28,309 & 33,546 & 39,767 & 40,727 & 47,055 \\ \hline 5,177 & 4,686 & 4,951 & 5,697 & 5,547 & 5,919 \\ \hline 1,905 & 1,951 & 2,119 & 2,135 & 2,046 & 2,466 \\ \hline 646 & 596 & 587 & 624 & 727 & 797 \\ \hline 0 & 595 & 0 & 0 & 0 & 580 \\ \hline 2,279 & 1,902 & 2,023 & 1,633 & 981 & 485 \\ \hline 41,056 & 38,039 & 43,226 & 49,856 & 50,028 & 57,302 \\ \hline 4,406 & 498 & 3,785 & 5,328 & 5,628 & 8,573 \\ \hline 531 & 505 & 507 & 484 & 465 & 467 \\ \hline 207 & 146 & 161 & 239 & (35) & 130 \\ \hline 4,082 & 139 & 3,439 & 5,083 & 5,128 & 8,236 \\ \hline 3,339 & 192 & 916 & 1,380 & 1,319 & 2,528 \\ \hline 743 & (53) & 2,523 & 3,703 & 3,809 & 5,708 \\ \hline 16 & (6) & 0 & 8 & (6) & 14 \\ \hline 759 & (59) & 2,523 & 3,711 & 3,803 & 5,722 \\ \hline 5 & 8 & 11 & 16 & 14 & 41 \\ \hline 754 & (67) & 2,512 & 3,695 & 3,789 & 5,681 \\ \hline 1 & (0) & 4 & 6 & 6 & 9 \\ \hline 1 & (0) & 4 & 6 & 6 & 8 \\ \hline & & & & & \\ \hline 592 & 584 & 594 & 617 & 645 & 653 \\ \hline 599 & 584 & 601 & 629 & 659 & 670 \\ \hline 3.11 & $3.08 & $3.01 & $2.70 & $2.32 & $2.02 \\ \hline \end{tabular} Consolidated Results of Operations - USD (\$) shares in Millions, $ in Millions Sales and revenues: Sales of Machinery, Energy \& Transportation \begin{tabular}{|r|r|r|r|r|r|} \hline 2021 & 2020 & 2019 & 2018 & 2017 & 2016 \\ \hline & & & & & \\ \hline 42,676 & 35,773 & 44,147 & 52,142 & 52,694 & 63,068 \\ \hline 2,786 & 2,764 & 2,864 & 3,042 & 2,962 & 2,807 \\ \hline 45,462 & 38,537 & 47,011 & 55,184 & 55,656 & 65,875 \\ \hline & & & & & \\ \hline 31,049 & 28,309 & 33,546 & 39,767 & 40,727 & 47,055 \\ \hline 5,177 & 4,686 & 4,951 & 5,697 & 5,547 & 5,919 \\ \hline 1,905 & 1,951 & 2,119 & 2,135 & 2,046 & 2,466 \\ \hline 646 & 596 & 587 & 624 & 727 & 797 \\ \hline 0 & 595 & 0 & 0 & 0 & 580 \\ \hline 2,279 & 1,902 & 2,023 & 1,633 & 981 & 485 \\ \hline 41,056 & 38,039 & 43,226 & 49,856 & 50,028 & 57,302 \\ \hline 4,406 & 498 & 3,785 & 5,328 & 5,628 & 8,573 \\ \hline 531 & 505 & 507 & 484 & 465 & 467 \\ \hline 207 & 146 & 161 & 239 & (35) & 130 \\ \hline 4,082 & 139 & 3,439 & 5,083 & 5,128 & 8,236 \\ \hline 3,339 & 192 & 916 & 1,380 & 1,319 & 2,528 \\ \hline 743 & (53) & 2,523 & 3,703 & 3,809 & 5,708 \\ \hline 16 & (6) & 0 & 8 & (6) & 14 \\ \hline 759 & (59) & 2,523 & 3,711 & 3,803 & 5,722 \\ \hline 5 & 8 & 11 & 16 & 14 & 41 \\ \hline 754 & (67) & 2,512 & 3,695 & 3,789 & 5,681 \\ \hline 1 & (0) & 4 & 6 & 6 & 9 \\ \hline 1 & (0) & 4 & 6 & 6 & 8 \\ \hline & & & & & \\ \hline 592 & 584 & 594 & 617 & 645 & 653 \\ \hline 599 & 584 & 601 & 629 & 659 & 670 \\ \hline 3.11 & $3.08 & $3.01 & $2.70 & $2.32 & $2.02 \\ \hline \end{tabular}

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