Jul 28, 2018	Jul 29, 2017	Jul 30, 2016
Net income	110	9,609	10,739
Depreciation, amortization, and other	2,192	2,286	2,150
Share-based compensation expense	1,576	1,526	1,458
Provision (benefit) for receivables	(134)	(8)	(9)
Deferred income taxes	900	(124)	(194)
Excess tax benefits from share-based compensation		(153)	(129)
(Gains) losses on divestitures, investments and other, net	(322)	154	(317)
Accounts receivable	(269)	756	(404)
Inventories	(244)	(394)	315
Financing receivables	(219)	(1,038)	(150)
Other assets	66	15	(37)
Accounts payable	504	311	(65)
Income taxes, net	8,118	60	(300)
Accrued compensation	100	(110)	(101)
Deferred revenue	1,205	1,683	1,219
Other liabilities	83	(697)	(605)
Change in operating assets and liabilities, net of effects of acquisitions and divestitures	9,344	586	(128)
Adjustments to reconcile net income to net cash provided by operating activities	13,556	4,267	2,831
Net cash provided by operating activities	13,666	13,876	13,570
Purchases of investments	(14,285)	(42,702)	(46,760)
Proceeds from sales of investments	17,706	28,827	28,778
Proceeds from maturities of investments	15,769	12,143	14,115
Acquisition of businesses, net of cash and cash equivalents acquired	(3,006)	(3,324)	(3,161)
Proceeds from business divestitures	27		372
Purchases of investments in privately held companies	(267)	(222)	(256)
Return of investments in privately held companies	168	203	91
Acquisition of property and equipment	(834)	(964)	(1,146)
Proceeds from sales of property and equipment	59	7	41
Other	(13)	39	(191)
Net cash (used in) provided by investing activities	15,324	(5,993)	(8,117)
Issuances of common stock	623	708	1,127
Repurchases of common stock, repurchase program	(17,547)	(3,685)	(3,909)
Shares repurchased for tax withholdings on vesting of restricted stock units	(703)	(619)	(557)
Short-term borrowings, original maturities less than 90 days, net	(2,502)	2,497	(4)
Issuances of debt	6,877	6,980	6,978
Repayments of debt	(12,375)	(4,151)	(3,863)
Excess tax benefits from share-based compensation		153	129
Dividends paid	(5,968)	(5,511)	(4,750)
Other	(169)	(178)	150
Net cash used in financing activities	(31,764)	(3,806)	(4,699)
Net increase (decrease) in cash and cash equivalents	(2,774)	4,077	754
Cash and cash equivalents, beginning of fiscal year	11,708	7,631	6,877
Cash and cash equivalents, end of fiscal year	8,934	11,708	7,631

5. Cisco engaged in large share repurchase and dividend payment totaling more than $23 billion. Why does the company continue to pay dividends and make large share repurchase in view of ever changing competitive landscape in technology sector that calls for substantial capital investments from time-to-time to stay competitive in the market?

6. Calculate operating cash flows to current liabilities ratio for 2018. What does this ratio measure?

7. The cash balance of the company decreases by $2,774 million in 2018 compared with a net cash increase of $4,077 million in 2017. Identify some major reasons for the difference in cash flows between the two years. Does the company present a healthy cash flow picture in 2018? Explain.