Question: Presented below is cash flow information for two competitors for 2018- Pifzer, Inc. and Johnson and Johnson( amounts in millions): Cash Flow From Company Operating

Presented below is cash flow information for two competitors for 2018- Pifzer, Inc. and Johnson and Johnson( amounts in millions):

Cash Flow From

Company Operating Profit Operations Investing Financing

Pifzer $15,724 $15,827 $4,525 $(20,441)

Johnson and Johnson 21,407 22,201 (3,167) (18,510)

Describe the cash management strategy of each company by identifying the key sources and uses of cash by each firm. Calculate the change in the cash balance for each firm. Explain why cash flow from operations is greater than operating profit for both firms.

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