Calculating and interpreting cash flow from operations. The following items appear in the financial statements of Upjohn, a pharmaceutical company, for Year 2

(amounts in millions):

LO1.

a. Compute the amount of cash flow from operations.

b. Comment on the major reasons why cash flow from operations exceeds net income.

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Sales Depreciation Expense Income Taxes Other Expenses $3,275 163 154 2,469 The changes in the current asset and current liability accounts were as follows: Accounts Receivable Merchandise Inventories Prepayments Accounts Payable. Other Current Liabilities. $ 3 Decrease 46 Increase 195 Increase 58 Increase 62 Increase