Need Help Answering (Cash Flow)

Consolidated Statements of Cash Flows 2017 7,102 2016 6,836 2015 8,548 $ $ $ 10,604 3,078 7,144 3,134 15,411 2,820 543 351 (601) (5,490) 337 Amounts in millions: Years ended June 30 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR OPERATING ACTIVITIES Net earnings Depreciation and amortization Loss on early extinguishment of debt Share-based compensation expense Deferred income taxes Gain on sale of assets Venezuela deconsolidation charge Goodwill and intangible asset impairment charges Change in accounts receivable Change in inventories Change in accounts payable, accrued and other liabilities Change in other operating assets and liabilities Other TOTAL OPERATING ACTIVITIES INVESTING ACTIVITIES Capital expenditures Proceeds from asset sales Cash related to deconsolidated Venezuela operations Acquisitions, net of cash acquired Purchases of short-term investments Proceeds from sales and maturities of short-term investments Pre-divestiture addition of restricted cash related to the Beauty Brands divestiture Cash transferred at closing related to the Beauty Brands divestiture Release of restricted cash upon closing of the Beauty Brands divestiture Cash transferred in Batteries divestiture Change in other investments TOTAL INVESTING ACTIVITIES (322) 71 (149) (43) 162 12,753 335 (815) (41) - 450 35 116 1,285 204 184 15,435 (803) (766) 2,028 2,174 349 313 928 (976) 746 14,608 (3,384) 571 (3,314) 432 - (186) (2,815) 1,354 (996) (3,736) 4,498 (908) (137) (3,647) 1,203 (16) (4,843) 1,488 (874) (475) 1,870 - (26) (5,689) (143) 93 (5,575) (163) (2,890) (7,236) 2,727 3,603 (4,931) (5,204) (7,436) (418) 3,916 (2,213) (4,004) (1,730) 2,672 (9,213) (7,287) (2,580) 2,138 (3,512) (4,604) 2,473 (8,568) 2,826 (13,019) FINANCING ACTIVITIES Dividends to shareholders Change in short-term debt Additions to long-term debt Reductions of long-term debt Treasury stock purchases Treasury stock from cash infused in Batteries divestiture Impact of stock options and other TOTAL FINANCING ACTIVITIES EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS CHANGE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, END OF YEAR SUPPLEMENTAL DISCLOSURE Cash payments for interest Cash payment for income taxes Divestiture of Batteries business in exchange for shares of P&G stock (2) Divestiture of Beauty business in exchange for shares of P&G stock and assumption of debt Assets acquired through non-cash capital leases are immaterial for all periods. (411) (29) (1,533) 5,569 (381) 266 7,102 (1,712) 6,836 $ $ $ $ S $ 518 3,714 569 3,730 4,213 678 4,558 11,360 Includes $543 of costs related to early extinguishment of debt. Includes $1,730 from cash infused into the Batteries business pursuant to the divestiture agreement (see Note 13). (2) See accompanying Notes to Consolidated Financial Statements. Proctor & Gamble company's complete 2017 annual report, including the notes to the financial statements, is available online. Please consult the complete annual report when necessary. Refer to these financial statements and the accompanying notes to answer the following questions. 1. Which method of computing net cash provided by operating activities does P&G use (Direct or Indirect)? (1 point) 2. What is the largest source of operating cash flow for the company in 2017? (1 point) 3. What are the two largest sources of cash from investing activities in 2017? (2 points) 4. What are the two largest uses of cash from investing activities in 2017? (2 points) 5. What are the two largest sources of cash from financing activities in 2017? (2 points) 6. What are the two largest uses of cash from financing activities in 2017? (2 points) 7. Did the company engage in any major non-cash activity in 2017? (1 point) Consolidated Statements of Cash Flows 2017 7,102 2016 6,836 2015 8,548 $ $ $ 10,604 3,078 7,144 3,134 15,411 2,820 543 351 (601) (5,490) 337 Amounts in millions: Years ended June 30 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR OPERATING ACTIVITIES Net earnings Depreciation and amortization Loss on early extinguishment of debt Share-based compensation expense Deferred income taxes Gain on sale of assets Venezuela deconsolidation charge Goodwill and intangible asset impairment charges Change in accounts receivable Change in inventories Change in accounts payable, accrued and other liabilities Change in other operating assets and liabilities Other TOTAL OPERATING ACTIVITIES INVESTING ACTIVITIES Capital expenditures Proceeds from asset sales Cash related to deconsolidated Venezuela operations Acquisitions, net of cash acquired Purchases of short-term investments Proceeds from sales and maturities of short-term investments Pre-divestiture addition of restricted cash related to the Beauty Brands divestiture Cash transferred at closing related to the Beauty Brands divestiture Release of restricted cash upon closing of the Beauty Brands divestiture Cash transferred in Batteries divestiture Change in other investments TOTAL INVESTING ACTIVITIES (322) 71 (149) (43) 162 12,753 335 (815) (41) - 450 35 116 1,285 204 184 15,435 (803) (766) 2,028 2,174 349 313 928 (976) 746 14,608 (3,384) 571 (3,314) 432 - (186) (2,815) 1,354 (996) (3,736) 4,498 (908) (137) (3,647) 1,203 (16) (4,843) 1,488 (874) (475) 1,870 - (26) (5,689) (143) 93 (5,575) (163) (2,890) (7,236) 2,727 3,603 (4,931) (5,204) (7,436) (418) 3,916 (2,213) (4,004) (1,730) 2,672 (9,213) (7,287) (2,580) 2,138 (3,512) (4,604) 2,473 (8,568) 2,826 (13,019) FINANCING ACTIVITIES Dividends to shareholders Change in short-term debt Additions to long-term debt Reductions of long-term debt Treasury stock purchases Treasury stock from cash infused in Batteries divestiture Impact of stock options and other TOTAL FINANCING ACTIVITIES EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS CHANGE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, END OF YEAR SUPPLEMENTAL DISCLOSURE Cash payments for interest Cash payment for income taxes Divestiture of Batteries business in exchange for shares of P&G stock (2) Divestiture of Beauty business in exchange for shares of P&G stock and assumption of debt Assets acquired through non-cash capital leases are immaterial for all periods. (411) (29) (1,533) 5,569 (381) 266 7,102 (1,712) 6,836 $ $ $ $ S $ 518 3,714 569 3,730 4,213 678 4,558 11,360 Includes $543 of costs related to early extinguishment of debt. Includes $1,730 from cash infused into the Batteries business pursuant to the divestiture agreement (see Note 13). (2) See accompanying Notes to Consolidated Financial Statements. Proctor & Gamble company's complete 2017 annual report, including the notes to the financial statements, is available online. Please consult the complete annual report when necessary. Refer to these financial statements and the accompanying notes to answer the following questions. 1. Which method of computing net cash provided by operating activities does P&G use (Direct or Indirect)? (1 point) 2. What is the largest source of operating cash flow for the company in 2017? (1 point) 3. What are the two largest sources of cash from investing activities in 2017? (2 points) 4. What are the two largest uses of cash from investing activities in 2017? (2 points) 5. What are the two largest sources of cash from financing activities in 2017? (2 points) 6. What are the two largest uses of cash from financing activities in 2017? (2 points) 7. Did the company engage in any major non-cash activity in 2017? (1 point)