Select a publicly traded company and access its most recent financial statements, form 10-K. Include the name of the company in your subject line, and do not choose a company about which one of your classmates has already posted. Navigate to the notes to the financial statements and locate the company's note on their statement of cash flows that was prepared using an indirect method. Discuss an item that was included when calculating net income but is adjusted as an increase or decrease to determine cash provided by (used in/by) operating activities. Specifically an asset, liability, gain, or loss. Include a summary of how that item impacted net income (or net loss) and why an adjustment might be necessary to reconcile net income to net cash flows from operations.
Wells Fargo & Company and Subsidiaries Consolidated Statement of Cash Flows Year ended December 31, 2019 2018 2017 Cash flows from operating activities come before noncontrolling interests 20,041 22.876 22.460 Adjustments to reconcile net income to net cash pro Provision for credit losses 2,687 1,744 2 528 Changes in fair value of MSRs, MUHFS and LHIPS carried at fair value 3,702 453 Depreciation, amortization and accretion 7,075 5.593 5.406 Other net gains 7.630 1 518 Stock-based compensation 2.274 2 255 2046 Originations and purchases of mortgage loans held for sale (158,673) 152,832) [181 269] Proceeds from sales of and paydo Net change in ortgage loans held for sale 112,718 119,097 134984 Debt and equity securities, held for trading 22,046 35.054 Loans held for sale 33,50 Deferred income taxes (3,249) 1,970 656 Derivative assets and liabilities (2.685) 1513 Other assets 3,034 7.805 [1 214] Other accrued expenses and abilities 2,429 1865) 4.837 Net cash provided by operating activities 6,730 36.073 18.619 Cash flows from investing activities. Net change in Federal funds sold and securities purd Available-for-sale debt securities [21,933] (1,184) (21 4971 Proceeds from sales 9.38 7,320 42,067 Prepayments and maturities Purchases 45,688 (57,015) 36,725 (60.067) 103,656 feld-to-maturity securities Paydowns and maturities Purchases 13,684 10.934 10,673 18.649] Equity securities, not held for trading: Proceeds from sales and capital returns 6,143 6.242 5.451 Purchases (5,865] 54331 (3.7351 Loans originated by banking subsidiaries, net of principal collected (23,690] (18 619) 317 Proceeds from sales Jincluding ncluding participations) of loans held for investment 12,038 16.294 (2.033] 10,439 Purchases (including participations) of loans (2.08.8) (3.7021 Principal collected on nonbank entities" loans 3.912 6,791 7.448 Loans originated by nonbank entities (5,274) (6,482 [6,8141 Proceeds from sales of foreclosed assets and short sales 2.666 3,592 5.198 Other, net (1] 1465 [779) Net cash used by investing activities (29,631) (7.754) (13 1521 Cash flows from financing activities Net change in: Deposits 36,137 (48,034) 29,912 Short-term borrowings (1 275) 2531 14.020 Long-term debt Proceeds from issuance 53,381 47.595 43,575 Repayment (60,996] (40.565) 180,802 referred stock Proceeds from issuance 677 Redeemed (1,550 12.150 Cash dividends paid (1,391) (1.622) [1 6291 Common stock Proceeds from issuance 380 632 1.211 Stock tendered for payment of withholding taxes (302] 1331] Repurchased (3931 24,5331 (20.6337 (9.908) Cash dividends paid (8,198) 7.692) (7.480) Net change in noncontrolling interests (513) 1462 30 Other, net (276) (248) (133] Net cash used by financing activities (9,136) [70 979) (10,920] Net change in cash, cash equivalents, and restricted cash 32,037] (42,660] (5.4531 wash, cash equivalents, and restricted cash at beginning of yes 73,287 215,947 221,400 ash, cash equivalents, and restricted cash at end of year 141.250 173.287 215,947 sh flow disclosures Cash paid for interest 18,834 Cash paid for income ta 1436 9.103 7.557 1977 6592 (1] Prior periods have been revised to conform to the current period presentation. The accompanying notes are an integral part of these statements. See Note 1 (Summary of Significant Accounting Policies] for noncash activities. 128 Wells Fargo & Company
