Operating Section of Statement of Cash Flows (Indirect Method) Assume following are the income statement and balance sheet for Nike Inc. for the year ended May 31, 2013, and a forecasted income statement and balance sheet for 2014.

Income Statement
($ millions)	2013 actual	2014 Est.
Revenues	$ 25,313	$ 27,465
Cost of sales	14,279	15,490
Gross margin	11,034	11,975
Demand creation expense	2,745	2,966
Operating overhead expense	5,035	5,466
Interest income, net	(3)	(3)
Other (income)	(15)	(19)
Income before income taxes	3,272	3,565
Income taxes	808	881
Net income	$ 2,464	$ 2,684

Balance Sheet
($ millions)	2013 Actual	2014 Est.
Cash and equivalents	$ 3,337	$ 3,625
Short-term investments	2,628	2,628
New investments	--	1,129
Accounts receivable, net	3,117	3,378
Inventories	3,434	3,735
Deferred income taxes	308	330
Prepaid expenses and other current assets	802	879
Total current assets	13,626	15,704
Property, plant and equipment, net	2,452	2,654
Identifiable intangible assets, net	382	304
Goodwill	131	131
Deferred income taxes and other assets	993	1,071
Total Assets	$ 17,584	$ 19,864
Current portion of long-term debt	$ 57	$ 46
Notes payable	121	121
Accounts payable	1,646	1,785
Accrued liabilities	1,986	2,142
Income taxes payable	98	107
Liabilities of discontinued operations	18	18
Total current liabilities	3,926	4,219
Long-term debt	1,210	1,164
Deferred income taxes and other liabilities	1,292	1,401
Shareholders equity:
Common stock at stated value	3	3
Capital in excess of stated value	5,184	5,184
Accumulated other comprehensive income	274	274
Retained earnings	5,695	7,619
Total shareholders equity	11,156	13,080
Total liabilities and shareholders equity	$ 17,584	$ 19,864

Prepare the net cash flows from operating activities section of a forecasted statement of cash flows for 2014 using the indirect method. Treat current and noncurrent deferred tax assets and liabilities as operating. Operating expenses (Cost of sales) for 2014 include estimated depreciation expense of $485 million and amortization expense of $78 million.

Use negative signs with answers to show a decrease in cash.

Nike, Inc. STATEMENT OF CASH FLOWS ($ MILLIONS) Forecasted FOR YEAR ENDED May 31, 2014
Net income	Answer
Depreciation	Answer
Amortization	Answer
Accounts receivable	Answer
Inventories	Answer
Deferred Income taxes	Answer
Prepaid expenses and other current	Answer
Deferred income taxes and other assets	Answer
Accounts payable	Answer
Accrued liabilities	Answer
Income taxes payable	Answer
Deferred income taxes and other liabilities	Answer
Net cash from operating activities	Answer