Pfizer Inc. and Subsidiary Companies Integrated Case $-$ Part $2$ In analyzing the Statement of Cash Flows, financial managers should not necessarily conclude the company is better off if the ending balance of cash increases and worse off if cash decreases. It is not the change in cash that is important but the reasons behind the change. Refer to the data you gathered and input on the FSAP Excel spreadsheet to address the following questions: Required:

$1.$ Discuss the relationship between net income and cash flow from operations for the three years presented in the $2023$ Annual $10-$K$,2021-2023.$ Why does net income differ from the amount of cash flows from operating activities?

$2.$ Explain why depreciation and amortization appear as an addition when net income is converted to cash flow from operations.

$3.$ Identify the primary cash outflows and inflows from investing activities for the three$-$year period. Is the company adding assets or is the company replacing assets? Is the company only selling assets? What does this indicate about the company$$s strategy?

$4.$ What was Pfizer$$s single largest use of cash from investing activities during the three$-$year period? How does that use of cash reflect Pfizer$$s business strategy?

$5.$ What was Pfizer$$s single largest use of cash for financing activities for the three$-$year period? What does that imply about Pfizer$$s financial positions and performance?

$6.$ During the three$-$year period $2021-2023,$ Pfizer paid dividends of $$8,729,$ $$8,983,$ and $$9\mathrm{.}247$ million respectively but did not repay a sizable portion of its debt. How do dividend payments differ from debt payments? Why would Pfizer continue to pay dividends in light of cash demands needed for capital expenditures and debt repayments?

$7.$ Provide an overall assessment of Pfizer$$s cash flows for $2023.$ In the analysis, consider the sources and uses of cash. In terms of operations, is the company doing a good job of generating cash?