Cash Flows from/for Operating Activities

Locate the Statements of Cash Flows in your company’s 10-K, and answer thequestions below for the most recent two years: Category: Cash Flows from/for Operating Activities12 Net income versus total for operating activities: report these values.Two to three most significant (i.e., largest) reconciling items between netincome and total cash from/for operating activities for the two most recentyears? Category: Cash Flows from/for Investing and FinancingActivities1 2 Identify two to three most significant (i.e., largest) reconciling items reportedin the investing activities section of the statement of cash flows for the two mostrecent years.Identify the two to three most significant (i.e., largest) financing activitiesused by your corporation to increase cash (or other assets) reported in thefinancing activities section of the statement of cash flows for the two mostrecent years. Category: Analysis1 Identify the net increase/decrease in cash and cash equivalents for the twomost recent years.2 Compute Free Cash Flows (show your computations) for the two most recentyears. Free Cash Flows can be computed in several ways, but we will use thisformula in our class:Free Cash Flows = Cash flows from operating activities ? Additions to property, plantand equipment ? Dividends to shareholders Additions to property, plant and equipment can be found in the investing activitiessection. Some companies call it Capital expenditures, Investments in property andequipment, or something similar.Dividends to shareholders can be found in the financing activities section. Somecompanies call it Dividends paid or something similar.Please include the name of your company in the subject line and the link to yourcompany’s 10-K in your posting. Example: Johnson & Johnson (J&J) (THIS IS HOW ITNEEDS TO LOOK)Use this example as a guide for answering these discussion questions for yourcompany. For this example, please refer to the J&J’s Consolidated Statements of CashFlows on page 24 of its 2014 10-K. Cash Flows from/for Operating Activities20142013Net earnings$16,323$13,831Net cash flows from operating activities18,47117,414Note the positive amount of Net cash flows from operating activities, which is a goodsign and shows that J&J is generating cash flows from selling their products.Identify three significant operating activities for your company. Please note that youdo not need to identify the exact same three items that I identified for J&J, and youshould use the titles/phrases used by your company and not the ones used by J&J.20142013Depreciation and amortization of property and intangibles$3,895 $4,104Net gain on sale of assets/businesses(2,383)(113)Increase in inventories(1,120)(622) Cash Flows from/for Investing and Financing ActivitiesIdentify three significant investing and financing activities. Please note that you donot need to identify the exact same three items that I identified for J&J, and youshould use the titles used by your company and not the ones used by J&J. Forexample, if your company uses the phrase Capital Expenditures instead of Additionsto property, plant and equipment, then you should also use the phrase CapitalExpenditures.Three significant investing activities20142013Additions to property, plant and equipment($3,714)($3,595)Purchases of investments(34,913)(18,923)Sales of investments24,11918,058Three significant financing activities20142013Dividends to shareholders($7,768)($7,286)Repurchase of common stock(7,124)(3,538) Proceeds from long-term debt2,0983,607 Analysis20142013calculations(Decrease)/Increase in cash and cash equivalents($6,404)$6,016amounts givenFree Cash Flows6,9896,533Cash flows from operating activities ? Additions to property, plant and equipment ?Dividends to shareholders2014: 18,471 ? 3,714 ? 7,7682013: 17,414 ? 3,595 ? 7,286