The statement of cash flow for Facebook contained the following numbers ( dollars in millions): a. Explain
Question:
The statement of cash flow for Facebook contained the following numbers ( dollars in millions):
a. Explain how profit could decrease while cash from operations increased over the same time period.
b. Analyze Facebook's cash management activities in 2018 and contrast them with 2019.
Transcribed Image Text:
2019 2018 Profit $ 18,485 $ 22,112 Operating cash flow 36,314 29,274 Cash flow from investing activities (19,864) (11,603) Cash flow from financing activities (7,299) (15,572)
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In order to determine the amount of cash created by operating operations, the indirect technique for preparing the statement of cash flows entails adjusting net income with changes in balance sheet.
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