Make an analysis of the Consolidated Statements of Operations focusing specifically on the net income and compare to the cash balances in the Consolidated Statements of Cash Flows. How do you explain to someone the differences between the numbers in the Cash Flows Statement and in the Statement of Operations or Income Statements? Consider the reasonableness of your answer.

Consolidated Statements of Comprehensive Income (in millions) Years Ended December 31, 2019 2018 2017 6,230 $ 5,046 $ 1,963 $ (2,182) (501) (1,380) Net earnings Other comprehensive income (loss), net of tax Postretirement benefit plans Net other comprehensive loss recognized during the period, net of tax benefit of $586 million in 2019, $136 million in 2018 and $375 million in 2017 Amounts reclassified from accumulated other comprehensive loss, net of tax expense of $247 million in 2019, $327 million in 2018 and $437 million in 2017 Other, net Other comprehensive income (loss), net of tax Comprehensive income 908 41 (1,233) 4,997 $ 1,202 (75) 626 5,672 $ 802 141 (437) 1,526 $ The accompanying notes are an integral part of these consolidated financial statements. Consolidated Balance Sheets (in millions, except par value) December 31, 2019 2018 $ 1,514 $ 772 2,337 2,444 9,094 9,472 3,619 2.997 531 418 17,095 16,103 6,591 6,124 10,604 10,769 3,213 3,494 3,319 3,208 6,706 5,178 47,528 $ 44,876 $ $ $ Assets Current assets Cash and cash equivalents Receivables, net Contract assets Inventories Other current assets Total current assets Property, plant and equipment, net Goodwill Intangible assets, net Deferred income taxes Other noncurrent assets Total assets Liabilities and equity Current liabilities Accounts payable Contract liabilities Salaries, benefits and payroll taxes Current maturities of long-term debt and commercial paper Other current liabilities Total current liabilities Long-term debt, net Accrued pension liabilities Other postretirement benefit liabilities Other noncurrent liabilities Total liabilities Stockholders' equity Common stock, $1 par value per share Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total stockholders' equity Noncontrolling interests in subsidiary Total equity Total liabilities and equity 1,281 7,054 2,466 1,250 1,921 13,972 11,404 13,234 337 5,410 44,357 2,402 6,491 2,122 1,500 1,883 14,398 12,604 11,410 704 4,311 43,427 280 281 18,401 15,434 (15, 14,3 3,127 1,394 44 55 3,171 1,449 $ 47,528 $ 44,876 The accompanying notes are an integral part of these consolidated financial statements. Consolidated Statements of Earnings (in millions, except per share data) Years Ended December 31, 2019 2018 2017 $ $ 50,053 9,759 59,812 45,005 $ 8,757 53,762 42,502 7,458 49,960 (44,589) (8,731) (38,417) (6,673) 1,875 (51,445) 8,367 178 Net sales Products Services Total net sales Cost of sales Products Services Severance and restructuring charges Other unallocated, net Total cost of sales Gross profit Other income, net Operating profit Interest expense Other non-operating expense, net Earnings from continuing operations before income taxes Income tax expense Net earnings from continuing operations Net earnings from discontinued operations Net earnings Earnings per common share Basic Continuing operations Discontinued operations Basic earnings per common share Diluted Continuing operations Discontinued operations Diluted earnings per common share (40,293) (7,738) (96) 1,639 (46,488) 7,274 60 7,334 (668) (828) 5,838 (792) 5,046 8,545 (653) (651) 7,241 (1,011) 6,230 1,501 (43,589) 6,371 373 6,744 (651) (847) 5,246 (3,356) 1,890 73 1,963 $ 6,230 $ 5,046 $ $ 22.09 $ 17.74 $ 6.56 0.26 $ 22.09 $ 17.74 $ 6.82 $ 21.95 $ 17.59 $ 6.50 0.25 6.75 $ 21.95 $ 17.59 $ The accompanying notes are an integral part of these consolidated financial statements. Consolidated Statements of Cash Flows (in millions) Years Ended December 31, 2019 2018 2017 S 6,230 $ 5,046 $ 1,963 1,189 189 222 1,161 173 (244) 96 1,195 158 3,448 (51) (198) (73) Operating activities Net earnings Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation and amortization Stock-based compensation Deferred income taxes Severance and restructuring charges Gain on property sale Gain on divestiture of IS&GS business Changes in assets and liabilities Receivables, net Contract assets Inventories Accounts payable Contract liabilities Postretirement benefit plans Income taxes Other, net Net cash provided by operating activities Investing activities Capital expenditures Other, net Net cash used for investing activities Financing activities Repurchases of common stock Dividends paid Proceeds from issuance of commercial paper, net Repayments of long-term debt Other, net Net cash used for financing activities Net change in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 107 378 (622) (1,098) 563 81 (151) 274 7,311 (179) (1,480) (119) 914 (537) (3,574) 1,077 804 3,138 (902) 390 (79) (189) 353 1,316 (1,210) 304 6,476 (1,484) 243 (1,241) (1,278) 203 (1,075) (1,177) 30 (1,147) (2,001) (2,163) (1,200) (2,556) (600) (900) (72) (5,328) 742 772 1,514 $ (1,492) (2,347) 600 (750) (163) (4,152) (2,089) 2,861 772 $ (141) (4,305) 1,024 1,837 2,861 S The accompanying notes are an integral part of these consolidated financial statements. Consolidated Statements of Comprehensive Income (in millions) Years Ended December 31, 2019 2018 2017 6,230 $ 5,046 $ 1,963 $ (2,182) (501) (1,380) Net earnings Other comprehensive income (loss), net of tax Postretirement benefit plans Net other comprehensive loss recognized during the period, net of tax benefit of $586 million in 2019, $136 million in 2018 and $375 million in 2017 Amounts reclassified from accumulated other comprehensive loss, net of tax expense of $247 million in 2019, $327 million in 2018 and $437 million in 2017 Other, net Other comprehensive income (loss), net of tax Comprehensive income 908 41 (1,233) 4,997 $ 1,202 (75) 626 5,672 $ 802 141 (437) 1,526 $ The accompanying notes are an integral part of these consolidated financial statements. Consolidated Balance Sheets (in millions, except par value) December 31, 2019 2018 $ 1,514 $ 772 2,337 2,444 9,094 9,472 3,619 2.997 531 418 17,095 16,103 6,591 6,124 10,604 10,769 3,213 3,494 3,319 3,208 6,706 5,178 47,528 $ 44,876 $ $ $ Assets Current assets Cash and cash equivalents Receivables, net Contract assets Inventories Other current assets Total current assets Property, plant and equipment, net Goodwill Intangible assets, net Deferred income taxes Other noncurrent assets Total assets Liabilities and equity Current liabilities Accounts payable Contract liabilities Salaries, benefits and payroll taxes Current maturities of long-term debt and commercial paper Other current liabilities Total current liabilities Long-term debt, net Accrued pension liabilities Other postretirement benefit liabilities Other noncurrent liabilities Total liabilities Stockholders' equity Common stock, $1 par value per share Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total stockholders' equity Noncontrolling interests in subsidiary Total equity Total liabilities and equity 1,281 7,054 2,466 1,250 1,921 13,972 11,404 13,234 337 5,410 44,357 2,402 6,491 2,122 1,500 1,883 14,398 12,604 11,410 704 4,311 43,427 280 281 18,401 15,434 (15, 14,3 3,127 1,394 44 55 3,171 1,449 $ 47,528 $ 44,876 The accompanying notes are an integral part of these consolidated financial statements. Consolidated Statements of Earnings (in millions, except per share data) Years Ended December 31, 2019 2018 2017 $ $ 50,053 9,759 59,812 45,005 $ 8,757 53,762 42,502 7,458 49,960 (44,589) (8,731) (38,417) (6,673) 1,875 (51,445) 8,367 178 Net sales Products Services Total net sales Cost of sales Products Services Severance and restructuring charges Other unallocated, net Total cost of sales Gross profit Other income, net Operating profit Interest expense Other non-operating expense, net Earnings from continuing operations before income taxes Income tax expense Net earnings from continuing operations Net earnings from discontinued operations Net earnings Earnings per common share Basic Continuing operations Discontinued operations Basic earnings per common share Diluted Continuing operations Discontinued operations Diluted earnings per common share (40,293) (7,738) (96) 1,639 (46,488) 7,274 60 7,334 (668) (828) 5,838 (792) 5,046 8,545 (653) (651) 7,241 (1,011) 6,230 1,501 (43,589) 6,371 373 6,744 (651) (847) 5,246 (3,356) 1,890 73 1,963 $ 6,230 $ 5,046 $ $ 22.09 $ 17.74 $ 6.56 0.26 $ 22.09 $ 17.74 $ 6.82 $ 21.95 $ 17.59 $ 6.50 0.25 6.75 $ 21.95 $ 17.59 $ The accompanying notes are an integral part of these consolidated financial statements. Consolidated Statements of Cash Flows (in millions) Years Ended December 31, 2019 2018 2017 S 6,230 $ 5,046 $ 1,963 1,189 189 222 1,161 173 (244) 96 1,195 158 3,448 (51) (198) (73) Operating activities Net earnings Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation and amortization Stock-based compensation Deferred income taxes Severance and restructuring charges Gain on property sale Gain on divestiture of IS&GS business Changes in assets and liabilities Receivables, net Contract assets Inventories Accounts payable Contract liabilities Postretirement benefit plans Income taxes Other, net Net cash provided by operating activities Investing activities Capital expenditures Other, net Net cash used for investing activities Financing activities Repurchases of common stock Dividends paid Proceeds from issuance of commercial paper, net Repayments of long-term debt Other, net Net cash used for financing activities Net change in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 107 378 (622) (1,098) 563 81 (151) 274 7,311 (179) (1,480) (119) 914 (537) (3,574) 1,077 804 3,138 (902) 390 (79) (189) 353 1,316 (1,210) 304 6,476 (1,484) 243 (1,241) (1,278) 203 (1,075) (1,177) 30 (1,147) (2,001) (2,163) (1,200) (2,556) (600) (900) (72) (5,328) 742 772 1,514 $ (1,492) (2,347) 600 (750) (163) (4,152) (2,089) 2,861 772 $ (141) (4,305) 1,024 1,837 2,861 S The accompanying notes are an integral part of these consolidated financial statements