Excerpts from the operating sections of the 2019 statement of cash flows for AT&T and Toyota are provided below. AT&T publishes U.S. GAAP-based financial statements in U.S. dollars, and Toyota publishes IFRS-based financial statements in Japanese yen (amounts in millions):

INSTRUCTIONS:
a. What is the bad debt expense provision, and on which other financial statement would you find it?
b. Explain why the bad debt expense provision and the change in accounts receivable appear in the operating section of the statement of cash flows.
c. Provide several reasons why net cash from operations is so much larger than net earnings for both companies.
d. Does it look like U.S. GAAP and IFRS account for bad debts much differently? Explain.

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AT&T Toyota Net earnings $14,975 ¥1,985,587 Bad debt expense provision 2,575 80,065 Change in accounts receivable +2,812 (246,845) Net cash from operations 48,668 3,766,597