Walgreen Co., the largest drugstore chain in the United States, had the following items in its financial

Question:

Walgreen Co., the largest drugstore chain in the United States, had the following items in its financial statements for the year ended August 31, 2011 (in millions):

Net sales ………………………………….. $72,184

Net earnings ……………………………………… 2,714

Additions to property and equipment …………. (1,213)

Depreciation and amortization …………………. 1,086

Proceeds from sale of business …………………… 442

Cash dividends paid …………………………….. (647)

Other noncash expenses …………………………… 53

Increases in other current liabilities ………………. 112

Business acquisitions, net of cash received ……… (630)

Increases in inventories ………………………….. (592)

Increases in trade accounts payable ……………….. 384

Increases in other current assets ………………….. (24)

Stock repurchases ……………………………… (2,028)

Other cash provided by financing activities ………… 15

Other cash used for investing activities ……………. (203)

Proceeds related to employee stock plans …………. 235

Increases in accrued expenses and other liabilities … 218

Increases in accounts receivable ………………….. (243)

Repayments on long-term debt ……………………. (17)

Retained earnings ………………………………. 18,877

Stock compensation expense ……………………… 135

Deferred income taxes …………………………….. 132

Gain on sale of business …………………………. (434)

Increases in income taxes payable ………………… 102

Proceeds from sale of assets ……………………….. 79

Total assets ……………………………………. 27,454

Cash and cash equivalents at beginning of year ……… ?

Cash and cash equivalents at end of year ………… 1,556

Net decrease in cash and cash equivalents ……….. (324)

Select the items from this list that would appear in Walgreens’ statement of cash flows and prepare the statement in proper form. Fill in the appropriate amount for cash and cash equivalents at the beginning of the period. Use the indirect method for reporting cash flows from operating activities.

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