This case is a continuation of the Caesars Entertainment Corporation serial case that began in Chapter 1. Refer to the introductory story in Chapter 1 (see page 43) for additional background. (The components of the Caesars serial case can be completed in any order.)
Following are the consolidated statements of cash flows for Caesars Entertainment Corporation for the years ended December 31, 2012 through 2014.5

Questions
1. Looking at the statements of cash flows above, which activity has generated the most cash for Caesars?
2. Now switch to thinking about Caesars's renovation of its hotel tower in Caesars Palace® Las Vegas. How would the renovation expenditures be reported in the statement of cash flows?
3. After completion, how should the interest, on the renovation cost, be reported on the statement of cash flows?

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Caesars Entertainment Corporation Consolidated Statements of Cash Flows (condensed and adapted) in millions Year Ended December 31, 2014 2013 2012 Cash flows from operating activities $ (2,866) $ (2,940) $ (1,503) Net loss Adjustments to reconcile cash flows 2,841 1,536 2,131 Cash flows from operating activities (735) (99) 33 Cash flows from investing activities Acquisitions of property and equipment (998) (726) (507) Other investing activities 309 791 (7 18) Cash flows from investing activities (689) 65 (1,225) Cash flows from financing activities Proceeds from inssuance of long-term debt 4,436 6,039 4,162 Repayments of long-term debt (2,833) (6,605) (2,661) Other financing activities 1,217 (89) (28) Cash flows from financing activities 1,514 651 1,473 Net cash flows from operating, investing, and financing 90 617 281 Other adjustments to cash (55) 396 586 Net increase (decrease) in cash and cash equivalents 35 1,013 867 Cash and cash equivalents, beginning of period 2,771 1,758 891 $ 2,806 $ 2,771 $ 1,758 Cash and cash equivalents, end of period