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interpreting the statement of cashflow following is the statement of cashflow for stryker corp B-49. Interpreting the Statement of Cash Flows Following is the statement
interpreting the statement of cashflow following is the statement of cashflow for stryker corp
B-49. Interpreting the Statement of Cash Flows Following is the statement of cash flows for Stryker Corp. Kequired a. Why does the company add back depreciation to compute net cash flows from operating activities? b. Explain why the change in accounts receivable and inventories are reported as adjustments to net earnings. Did the accounts receivable and inventories balances increase or decrease during the year? c. Stryker reports that it invested $572 million in property, plant and equipment. Is this an appropriate type of expenditure for the company to make? What relation should expenditures for PPE have with depreciation expense? d. Stryker paid $300 million to repurchase its common stock in fiscal 2018 and, in addition, paid dividends of \$703 million. Thus, it paid \$1,003 million of cash to its stockholders during the year. How do we evaluate that use of cash relative to other possible uses for the company's cash? e. Provide an overall assessment of the company's cash flows for fiscal 2018. In the analysis, consider the sources and uses of cashStep by Step Solution
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