A number of years ago, a leading media company’s annual report contained the following information (dollars in millions):

Required:
1. Based on this information, compute cash flow from operating activities using the indirect method.
2. What were the major reasons that the media company was able to report a net loss but positive cash flow from operations? Explain why the reasons for the difference between cash flow from operations and net income are important to financial analysts.

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Net loss Depreciation, amortization, and impairments Decrease in receivables Increase in inventories Decrease in accounts payable Additions to equipment $(13,402) 34,790 1,245 5,766 445 4,377