CVS CAREMARK STATEMENT OF CASH FLOW 2016 2015 CASH FLOW FROM OPERATIONS 2017 $ 3,875 3,457 3,424 1,469 30 Net income Adjustments for noncash items 1,753 (106) 348 132 1,568 144 (53) 135 Depreciation and amortization Deferred income taxes Loss (gain) on early extinguishment of debt Equity based compensation Change in operating assets and liabilities (increase) decrease accounts receivable (Increase) decrease in inventories (Increase) decrease in other assets Increase (decrease) Accrued expense Increase (decrease) in accounts payable Increase (decrease) in other liabilities 150 532 (352) (387)(748) (858) (96) 753 1,147 110 607 (469) 1,128 (40) 2 6,671 $5,856 (220) $ 4,779 Net cash from operating activities CASH FLOW FOR INVESTING ACTIVITIES Property, plant & equip acquired Purchase of investments (1,478) (371) (1,276) (1,464) (1,134)(176) Net cash for investing activities (1,849)$ (2,410)(1,640) CASH FLOW FOR FINANCING ACTIVITIES Increase in long-term borrowing Increase in short-term borrowing Increase in common sock Decrease in long-term borrowing Decrease in short-term borrowing Repurchase of common stock Dividend payments Other financing transactions 1,239 1,463 450 431 (2,122) 991 285 (2,103) (15) (1,500) (479) 23 $(4,860) $ (3,460) (2,798) 836 (1,718) (60) (4,330) (829) (3,001) (674) Net cash for financing activities Net increase (decrease) in cash Beginning cash balance Ending cash balance (14) 1,427 $1,375 $ 1,413 38 341 1,086 1,427 1,413 REQUIRED: CVS operates a chain of drugstores. Discuss the relationship between net income and cash flow from operations and between cash flows from operating, investing and financing activities for the firm over the 3 year period