Reading and Interpreting Walgreens Boots Alliance’s Statement of Cash Flows

Refer to Walgreens's statement of cash flow and answer the following questions for the most recent year.

Required:

1.  Which method, direct or indirect, does Walgreens Boots Alliance use in preparing the Operating Activities section of its statement of cash flows?
indirect 

Explain how you know which method is being used.

The indirect  method begins with net earnings, and adjustments are made to reconcile net earnings to net cash provided by operating activities.

2.  By what amount does net cash provided by operating activities differ from net earnings? Enter your answer in millions.
$ million

What is the largest adjustment to reconcile the two numbers? Explain the nature of this adjustment. Why is it added?

The largest adjustment to reconcile the two numbers is for depreciation and amortization  . The amount is added back to net earnings because it is a non-cash  expense.

3.  What is the largest source of cash in the Investing Activities section of the statement?
Proceeds from sale leaseback transactions
What is the largest use in this section?
Alliance Boots acquisition
What is the next largest use of cash in this section?
Additions to property, plant and equipment 

4.  What is the largest source of cash in the Financing Activities section of the statement?
Proceeds from the issuance of long-term debt
What is the largest use of cash in this section?
Payments of long-term debt