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Please see the below and show all steps/calculations for the solution: 2017 2016 $ 1,979 1,955 329 (1,330) 334 $ 7,722 2,105 311 183 32

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2017 2016 $ 1,979 1,955 329 (1,330) 334 $ 7,722 2,105 311 183 32 (58) 133 (24) 424 523 6,681 231 11,177 (214) (80) (128) (44) (301) 445 323 10,354 258 AMGEN INC. CONSOLIDATED STATEMENTS OF CASH FLOWS For Years Ended December 31, $ millions 2018 Cash flows from operating activities Net income.. $ 8,394 Depreciation and amortization 1,946 Stock-based compensation expense 311 Deferred income taxes. (363) Other items, net....... 386 Changes in operating assets and liabilities, net of acquisitions: Trade receivables, net... (378) Inventories (3) Other assets 35 Accounts payable (143) Accrued income taxes, net (361) Long-term tax liabilities. Other liabilities 1,214 Net cash provided by operating activities 11,296 Cash flows from investing activities Purchases of marketable securities (18,741) Proceeds from sales of marketable securities 28,356 Proceeds from maturities of marketable securities. 5,412 Purchases of property, plant and equipment (738) Cash acquired in acquisition, net of cash paid .. 195 Other...... (145) Net cash used in investing activities. 14,339 Cash flows from financing activities Net proceeds from issuance of debt.... Repayment of debt.... (1,121) Repurchases of common stock. (17,794) Dividends paid (3,507) Withholding taxes arising from shares withheld for share-based payments. (126) Other... 58 Net cash used in financing activities .... (22,490 Increase (decrease) in cash and cash equivalents 3,145 Cash and cash equivalents at beginning of period. . 3,800 Cash and cash equivalents at end of period $ 6,945 (33,607) 24,240 6,174 (664) (19) (148) (4,024) (28,094) 17,958 2,459 (738) (243 (8,658) 4,476 (4.405) (3,160) (3,365) (191) 51 (6,594) 559 3.241 $ 3,800 7,318 (3.725) (2,965) (2,998) (260) 31 (2,599) (903) 4,144 $ 3,241 Required a. What does Amgen report as net cash from operating activities in 2018? What is net income for the year? Much of this difference is the result of depreciation. Why is Amgen adding depreciation to net income in the computation of operating cash flows? b. In determining cash provided by operating activities, Amgen adds $311 million relating to stock- based compensation expense in 2018. What is the purpose of this addition? c. Amgen reports $(378) million relating to trade receivables. What does the negative sign on this amount signify about the change in receivables during the year compared with the negative sign on accounts payable in 2018? d. Calculate and compare operating cash flow with current liabilities and operating cash flow with capital expenditures for 2018 and 2017. Current liabilities were $13,488 million, $9,020 million, and $11,204 million at the end of 2018, 2017, and 2016, respectively. e. Does the composition of Amgen's cash flow present a healthy" picture for 2018? Explain

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