Refer to the financial statements and the notes to the financial statements.

THE BASICS:

Locate the companys statement of cash flows.

What is the period covered by the statement? ________________________________

1. What was the ending balance of cash and cash equivalents in the current year?

Does this agree with the ending balance of cash and cash equivalents reported on the balance sheet? _________

2. What was the net cash flow from investing activities? _____________________

Was it an inflow or an outflow of cash? ___________________________________

What accounted for the largest cash flow from investing activities? ______________________

3. What was the net cash flow from financing activities? ____________________

Was it an inflow or an outflow of cash? ___________________________________

What accounted for the largest cash flow from financing activities? ______________________

4. What was the net cash flow from operating activities? ______________________

Was it an inflow or an outflow of cash? ____________________________________

5. Did the company use the direct or indirect method in reporting net cash flows from operating

activities? __________________________

How can you tell?

What was the net cash flow from operating activities for the last two years?

Current year__________________

Last Year __________________

ANALYSIS:

6. Calculate the following ratios.

a. Free cash flow = Cash provided by operating activities - capital expenditures debt repayments

Current year __________________

Last Year __________________

Cash flow on Total Assets = Cash flow from operations/average total assets)

Current year______________________

Last year _______________________

Cash coverage of growth = Op Cash flow from operations/Cash outflow for plant assets

Current year______________________

Last year _______________________

Consolidated Statements of Cash Flows millions Operating activities Net earnings / (loss) Eamings / (losses) from discontinued operations, net of tax Net earnings from continuing operations Adjustments to reconcile net earnings to cash provided by operations: 2014 (1,636) 085 2,449 2.737 S 3,363 S 2,669 3,321 2.129 Depreciation and amortization Share-based compensation expense Deferred income taxes Gain on sale Loss on debt extinguishment Noncash (gains)/losses and other, net Changes in operating accounts: 2,213 (322) Other assets Accounts payable and accrued liabilities 803 5,157 579 5,254 704 5,958 5,329 Cash provided by operating activities-continuing operations Cash provided byr Cash provided by operations Investing activities 107 5,436 equired for) operating activitio tinued operations 4.465 (1,438) 28 1,875 (1,786) 95 (1,547) Expenditures for property and equipment Proceeds from disposal of property and equipment Proceeds from sale of businesses Cash paid for acquisitions, net of cash assumed Other investments (20) 106 (1,605) 321 (1,926 Cash (required for)/provided by investing activities--continuing operations Cash provided by /required for) investing Cash crequired for) / provided by investing activities Financing activities scontinued operations (1,473) Change in commercial paper, net Additions to long-term debt Reductions of long-term debt Dividends paid Repurchase of stock Stock option exercises 1,993 (2,079) 1,977 (2.641) (1,348) (3,706) (85) (1,362) (3,483) 300 (5,497) (1,024) Cash required for financing activities Net (decrease)/ increase in cash and cash equivalents (1,534) 4,046 2,512 S 1,836 2,210 4,046 S 695 of period ( 2,210 Cash and cash equivalents at end of period Supplemental information 999 S 1,514 604 $ Interest paid, net of capitalized interest Income taxes paid / (refunded) 1.251 Includes cash of our discontinued operations of $25 million at February 1, 2014 accompanying Notes to Consolidated Financial Statements