E11-39. Using Statement of Cash Flow Information to Assess Company Life-Cycle Stage Consider each company's statement of cash flows as reported in assignments referenced below. Com- plete the table to (a) indicate the sign of the cash flows and (b) identify the company's life-cycle stage (introduction, growth, maturity, or decline). Cash from Investing Activities Cash from Financing Activities Life-Cycle Stage See Financial Cash from Information Operating Company ($ millions) in: Activities Amgen Inc. ............... P11-56 Staples Inc. .................... P11-57 Roger's Communications ........ 111-58 P11-56. Interpreting the Statement of Cash Flows Following is the statement of cash flows of Amgen Inc. AMGEN INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Years Ended December 31, 2015, 2014 and 2013 $ millions 2015 2014 2013 $ 6,939 2,108 322 (607) (399) $ 5,158 2,092 408 (108) (116) $ 5,081 1,286 403 (189) 103 (420) 136 327 (38) 481 Cash flows from operating activities: Net income............ Depreciation and amortization ....... Stock-based compensation expense .. Deferred income taxes.... Other items, net ..... Changes in operating assets and liabilities, net of acquisitions: Trade receivables, net ..... Inventories ...... Other assets ......... Accounts payable...... Accrued income taxes ........ Other liabilities ..................... Net cash provided by operating activities ........... Cash flows from investing activities: Purchases of property, plant and equipment. Cash paid for acquisitions, net of cash acquired. .... Purchases of intangible assets.. Purchases of marketable securities ...... Proceeds from sales of marketable securities ... Proceeds from maturities of marketable securities ... Proceeds from sale of property, plant and equipment.. Change in restricted investments, net ........ 155 (12) 509 228 (103) 534 8,555 (59) 60 (326) (23) 6,291 9,077 (693) (9,434) (594) (359) (55) (25,977) 18,029 3,527 274 (718) (165) (285) (25,878) 16,697 4,199 3 (21,965) 19,123 5,090 20 (520) (90) (8,469) Other.......................... (392) (5,547) 533 (138) (5,752) 3,465 (2,400) (1,867) (2,396) 4,476 (5,605) (138) (1,851) 8,054 (3,371) (832) (1,415) Net cash used in investing activities Cash flows from financing activities: Net proceeds from issuance of debt .. Repayment of debt........ Repurchases of common stock.. Dividends paid .. Net proceeds from issuance of common stock in connection with the Company's equity award programs Settlement of contingent consideration obligations.............. Other...................................... Net cash (used in) provided by financing activities ..... Increase (decrease) in cash and cash equivalents. Cash and cash equivalents at beginning of period ........ Cash and cash equivalents at end of period .......... 82 296 (253) 252 (3,117) 186 (92) 147 (2,877) (74) 3,805 $ 3,731 413 3,731 $ 4,144 2,726 548 3,257 $ 3,805 P11-57. L01, 5,6 Staples Inc. (SPLS) Interpreting the Statement of Cash Flows Following is the statement of cash flows of Staples Inc. STAPLES INC. Consolidated Statements of Cash Flows Fiscal Year Ended ($ Millions) January 30, 2016 $379 388 Operating Activities: Consolidated net income... Adjustments to reconcile net income to net cash provided by operating activities: Depreciation....... Amortization of intangibles..................... Loss on sale of businesses and assets, net... Impairment of goodwill and long-lived assets ... Inventory write-downs related to restructuring activities ........... Stock-based compensation.......... Excess tax benefits from stock-based compensation arrangements Deferred income tax expense ..... O ther . . . . .. . . .. . . . . .. . .. . . . .. . . . . . . .. . . . .. . .. . .. . . .. . . .. . . . 18 (41) 63 110 (140) 978 Changes in assets and liabilities: Increase in receivables... Decrease increase) in merchandise inventories ..... (Increase) decrease in prepaid expenses and other assets.. Increase (decrease) in accounts payable........... Increase (decrease) in accrued expenses and other liabilities. (Decrease) increase in other long-term obligations ......... Net cash provided by operating activities .. Investing Activities: Acquisition of property and equipment ...... Cash paid for termination of joint venture ..... Proceeds from the sale of property and equipment. ...... Sale of businesses, net ..... Acquisition of businesses, net of cash acquired Net cash used in investing activities ......... Financing Activities: Proceeds from the exercise of stock options and sale of stock under employee stock purchase plans ... Proceeds from borrowings.... Payments on borrowings, including payment of deferred financing fees and capital lease obligations ... Cash dividends paid. ......... Excess tax benefits from stock-based compensation arrangements .... Repurchase of common stock .... Net cash used in financing activities ........ Effect of exchange rate changes on cash and cash equivalents.... Net increase (decrease) in cash and cash equivalents ..... Cash and cash equivalents at beginning of period ........ Cash and cash equivalents at end of period ..... (99) (308) (24) (378) (28) 198 627 $825 ROGER'S COMMUNICATIONS Consolidated Statements Of Cash Flows Years ended December 31 (in millions of Canadian dollars) 2015 2014 $1,381 $1,341 Operating activities: Net income for the year ....... Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization .. Program rights amortization. Finance costs ............... Income taxes............. Stock-based compensation .... Post-employment benefits contributions, net of expense Gain on acquisition of Mobilicity. .... 2,277 87 774 466 55 (16) (102) 82 2,144 66 817 506 37 (34) O ther .............................. 48 4,925 11 5,004 (302) 4,702 (184) (771) 3,747 4,936 (460) (778) 3,698 Cash provided by operating activities before changes in non-cash working capital, income taxes paid, and interest paid Change in non-cash operating working capital items ........... Cash provided by operating activities before income taxes paid and interest paid Income taxes paid ....... Interest paid ................... Cash provided by operating activities ...... Investing activities: Additions to property, plant and equipment. ......... ............ Additions to program rights ........ Change in non-cash working capital related to property, plant and equipment and intangible assets... Acquisitions and other strategic transactons, net of cash acquired . Other ......................... Cash used in investing activities .... roperty, plant and equipment................................................ (2,440) (64) (2,366) (231) 153 (3,456) (51) (5,951) (116) (1,077) (70) (3,767) ...... continued continued from previous page Years ended December 31 (in millions of Canadian dollars) 2015 2014 .... ... Financing activities: Proceeds received on short-term borrowings .... Repayment of short-term borrowings....... Issuance of long-term debt. . . . . ...... Repayment of long-term debt ......... .................. Proceeds on settlement of debt derivatives and forward contracts. ........ Payments on settlement of debt derivatives, forward contracts, and bond forwards Transaction costs incurred ........ Dividends paid ...... Cash (used in) provided by financing activities ...... Change in cash and cash equivalents ......... Cash and cash equivalents, beginning of year ..... Cash and cash equivalents, end of year ..... $ 294 (336) 7.338 (6,584) 1,059 (930) (9) (977) (145) (165) 176 $ 11 $ 276 (84) 3,412 (2,551) 2,150 (2,115) (30) (930) 128 (2,125) 2,301 $ 176 : $ The change in non-cash operating working capital items is as follows: Accounts receivable........ Inventories ........... Other current assets. ...... Accounts payable and accrued liabilities ...... Unearned revenue ....... $ (185) (66) (23) (81) 26 (18) (2) 86 33 (61) $ (302) $ 11 Cash and cash equivalents (bank advances) are defined as cash and short-term deposits, which have an original maturity of less than 90 days, less bank advances. As at December 31, 2015 and 2014, the balance of cash and cash equivalents comprised cash and demand deposits. E11-39. Using Statement of Cash Flow Information to Assess Company Life-Cycle Stage Consider each company's statement of cash flows as reported in assignments referenced below. Com- plete the table to (a) indicate the sign of the cash flows and (b) identify the company's life-cycle stage (introduction, growth, maturity, or decline). Cash from Investing Activities Cash from Financing Activities Life-Cycle Stage See Financial Cash from Information Operating Company ($ millions) in: Activities Amgen Inc. ............... P11-56 Staples Inc. .................... P11-57 Roger's Communications ........ 111-58 P11-56. Interpreting the Statement of Cash Flows Following is the statement of cash flows of Amgen Inc. AMGEN INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Years Ended December 31, 2015, 2014 and 2013 $ millions 2015 2014 2013 $ 6,939 2,108 322 (607) (399) $ 5,158 2,092 408 (108) (116) $ 5,081 1,286 403 (189) 103 (420) 136 327 (38) 481 Cash flows from operating activities: Net income............ Depreciation and amortization ....... Stock-based compensation expense .. Deferred income taxes.... Other items, net ..... Changes in operating assets and liabilities, net of acquisitions: Trade receivables, net ..... Inventories ...... Other assets ......... Accounts payable...... Accrued income taxes ........ Other liabilities ..................... Net cash provided by operating activities ........... Cash flows from investing activities: Purchases of property, plant and equipment. Cash paid for acquisitions, net of cash acquired. .... Purchases of intangible assets.. Purchases of marketable securities ...... Proceeds from sales of marketable securities ... Proceeds from maturities of marketable securities ... Proceeds from sale of property, plant and equipment.. Change in restricted investments, net ........ 155 (12) 509 228 (103) 534 8,555 (59) 60 (326) (23) 6,291 9,077 (693) (9,434) (594) (359) (55) (25,977) 18,029 3,527 274 (718) (165) (285) (25,878) 16,697 4,199 3 (21,965) 19,123 5,090 20 (520) (90) (8,469) Other.......................... (392) (5,547) 533 (138) (5,752) 3,465 (2,400) (1,867) (2,396) 4,476 (5,605) (138) (1,851) 8,054 (3,371) (832) (1,415) Net cash used in investing activities Cash flows from financing activities: Net proceeds from issuance of debt .. Repayment of debt........ Repurchases of common stock.. Dividends paid .. Net proceeds from issuance of common stock in connection with the Company's equity award programs Settlement of contingent consideration obligations.............. Other...................................... Net cash (used in) provided by financing activities ..... Increase (decrease) in cash and cash equivalents. Cash and cash equivalents at beginning of period ........ Cash and cash equivalents at end of period .......... 82 296 (253) 252 (3,117) 186 (92) 147 (2,877) (74) 3,805 $ 3,731 413 3,731 $ 4,144 2,726 548 3,257 $ 3,805 P11-57. L01, 5,6 Staples Inc. (SPLS) Interpreting the Statement of Cash Flows Following is the statement of cash flows of Staples Inc. STAPLES INC. Consolidated Statements of Cash Flows Fiscal Year Ended ($ Millions) January 30, 2016 $379 388 Operating Activities: Consolidated net income... Adjustments to reconcile net income to net cash provided by operating activities: Depreciation....... Amortization of intangibles..................... Loss on sale of businesses and assets, net... Impairment of goodwill and long-lived assets ... Inventory write-downs related to restructuring activities ........... Stock-based compensation.......... Excess tax benefits from stock-based compensation arrangements Deferred income tax expense ..... O ther . . . . .. . . .. . . . . .. . .. . . . .. . . . . . . .. . . . .. . .. . .. . . .. . . .. . . . 18 (41) 63 110 (140) 978 Changes in assets and liabilities: Increase in receivables... Decrease increase) in merchandise inventories ..... (Increase) decrease in prepaid expenses and other assets.. Increase (decrease) in accounts payable........... Increase (decrease) in accrued expenses and other liabilities. (Decrease) increase in other long-term obligations ......... Net cash provided by operating activities .. Investing Activities: Acquisition of property and equipment ...... Cash paid for termination of joint venture ..... Proceeds from the sale of property and equipment. ...... Sale of businesses, net ..... Acquisition of businesses, net of cash acquired Net cash used in investing activities ......... Financing Activities: Proceeds from the exercise of stock options and sale of stock under employee stock purchase plans ... Proceeds from borrowings.... Payments on borrowings, including payment of deferred financing fees and capital lease obligations ... Cash dividends paid. ......... Excess tax benefits from stock-based compensation arrangements .... Repurchase of common stock .... Net cash used in financing activities ........ Effect of exchange rate changes on cash and cash equivalents.... Net increase (decrease) in cash and cash equivalents ..... Cash and cash equivalents at beginning of period ........ Cash and cash equivalents at end of period ..... (99) (308) (24) (378) (28) 198 627 $825 ROGER'S COMMUNICATIONS Consolidated Statements Of Cash Flows Years ended December 31 (in millions of Canadian dollars) 2015 2014 $1,381 $1,341 Operating activities: Net income for the year ....... Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization .. Program rights amortization. Finance costs ............... Income taxes............. Stock-based compensation .... Post-employment benefits contributions, net of expense Gain on acquisition of Mobilicity. .... 2,277 87 774 466 55 (16) (102) 82 2,144 66 817 506 37 (34) O ther .............................. 48 4,925 11 5,004 (302) 4,702 (184) (771) 3,747 4,936 (460) (778) 3,698 Cash provided by operating activities before changes in non-cash working capital, income taxes paid, and interest paid Change in non-cash operating working capital items ........... Cash provided by operating activities before income taxes paid and interest paid Income taxes paid ....... Interest paid ................... Cash provided by operating activities ...... Investing activities: Additions to property, plant and equipment. ......... ............ Additions to program rights ........ Change in non-cash working capital related to property, plant and equipment and intangible assets... Acquisitions and other strategic transactons, net of cash acquired . Other ......................... Cash used in investing activities .... roperty, plant and equipment................................................ (2,440) (64) (2,366) (231) 153 (3,456) (51) (5,951) (116) (1,077) (70) (3,767) ...... continued continued from previous page Years ended December 31 (in millions of Canadian dollars) 2015 2014 .... ... Financing activities: Proceeds received on short-term borrowings .... Repayment of short-term borrowings....... Issuance of long-term debt. . . . . ...... Repayment of long-term debt ......... .................. Proceeds on settlement of debt derivatives and forward contracts. ........ Payments on settlement of debt derivatives, forward contracts, and bond forwards Transaction costs incurred ........ Dividends paid ...... Cash (used in) provided by financing activities ...... Change in cash and cash equivalents ......... Cash and cash equivalents, beginning of year ..... Cash and cash equivalents, end of year ..... $ 294 (336) 7.338 (6,584) 1,059 (930) (9) (977) (145) (165) 176 $ 11 $ 276 (84) 3,412 (2,551) 2,150 (2,115) (30) (930) 128 (2,125) 2,301 $ 176 : $ The change in non-cash operating working capital items is as follows: Accounts receivable........ Inventories ........... Other current assets. ...... Accounts payable and accrued liabilities ...... Unearned revenue ....... $ (185) (66) (23) (81) 26 (18) (2) 86 33 (61) $ (302) $ 11 Cash and cash equivalents (bank advances) are defined as cash and short-term deposits, which have an original maturity of less than 90 days, less bank advances. As at December 31, 2015 and 2014, the balance of cash and cash equivalents comprised cash and demand deposits