10. Analyze the following cash inflows and cash outflows.

Star Pharmaceuticals

Statement of Cash Flows

For the Years Ended December 31, 2015 and 2014

(in millions)	2015	2014
Cash flows from operating activities (CFO):
Net income	$5,800	$3,300
Adjustments to reconcile net income to CFO:
Depreciation and amortization	550	360
Deferred income taxes	10	(580)
Stock-based compensation	590	170
(Increase) decrease in operating assets and liabilities:
Accounts receivable	(490)	(380)
Inventories	(6,900)	(1,960)
Other current assets	410	(480)
Accounts payable	700	690
Income taxes payable	250	140
Accrued liabilities	170	(290)
Net CFO	1,090	970
Cash flows from investing activities:
Purchases of property and equipment	(740)	(750)
Acquisitions	0	(350)
Net cash used by investing activities	(740)	(1,100)
Cash flows from financing activities:
Proceeds from common stock sales	2,000	580
Repayment of short-term line of credit	0	(140)
Repayment of long-term debt	(70)	(70)
Net cash provided by financing activities	1,930	370
Net increase in cash	2,280	240
Beginning cash balance	980	740
Ending cash balance	$3,260	$980