Step 1)Identify if anINCREASE in VALUEin each B/Scategory is either aSOURCE or a USEof cash

Step 2)Use cell referencesfrom the P&L and/or B/S to calculate the financial impact in each row in the cash flow

Step 3)Complete the cash.If you have unexplained variances, can you identify what you think the reason is?

US Corporation (Data from Textbook + small enhancement) US Corporation (Data from Textbook) AMAZON EXAMPLE SHOWS 3 SEGMENTS OF CASH FLOW Source of Cash Source of Cash/ (Use of Balance Sheet 2018 2019 (Use of Cash) 2018 2019 Cash) Cash Flow 2019 Annual Data | Millions of US $ except per share data 2019-12-31 Assets Liabilities Current Liabilities Cash from Operations Net Income/Loss $11,588 Current Assets Cash 104 160 Begin & end Accounts Payable (AP) 132 150 Net Income/Loss Total Depreciation And Amortization - Cash Flow $21,789 $7,411 Accounts Receivable (AR) 455 688 Accrued Employee Benefits 100 116 Adjustments to Net Income Other Non-Cash Items Inventory 553 555 Short Term Notes Payable 196 123 Depreciation (+ other non cash items) Total Non-Cash Items $29,200 Total Stock based Compensation (P&L) Change In Accounts Receivable $-7,681 Total $-3,278 Fixed Assets Deferred Taxes (reflected in liability) Change In Inventories Long Term Notes Payable 454 Other NON CASH ITEMS Change In Accounts Payable $8, 193 Net Fixed Assets 1644 1709 Bot Owner's Equity Change in: Change In Assets/Liabilities $1,711 AR Total Change In Assets/Liabilities $-2,438 Common Stock 600 640 Retained Earnings 1320 1629 Inventory Cash Flow From Operating Activities $38,514 Total AP Net Change In Property, Plant, And Equipment S-12,689 Total Assets Total Liabilities & Owners' Equity Other Assets/Liabilities Net Change In Intangible Assets Net Acquisitions/Divestitures $-2,461 Total Change in Operating Assets/Liabilities Net Change In Short-term Investments Cash Flow from Operating Activities Net Change In Long-Term Investments $-9,131 Income Statement 2019 Net Change in PPE Net Change In Investments - Total $-9,131 Rev or Exp? Calculations required for (beneficial for) cash flow statement? Net Acquisitions/Divestitures Investing Activities - Other Net Sales 1509 For Operating Activities: Net Change Short orLong Term Investments Cash Flow From Investing Activities $-24,281 Cost of Goods Sold 550 Adjustments to net income, e.g. non cash expenses: Cash from Investing Activities Net Long-Term Debt S-10,066 Employee Compensation 200 depreciation & amortization, stock based comp Debt Issuance/Retirement Net Current Debt Depreciation 89 For Investing Activities: Equity Issued/Repurchased Debt Issuance/Retirement Net - Total S-10,066 Earnings Before Interest & Taxes Depreciation and Fixed Assets to calculate Net PPE Other Financial Activities Net Common Equity Issued/Repurchased Interes 70 For Financing Activities: Cash from financing Net Total Equity Issued/Repurchased Taxable Income Principal payments & Borrowing - or just show net change Net Cash Flow Total Common And Preferred Stock Dividends Paid Taxes (21%) Net Common Equity Issued/Repurchased Beginnning Cash 104 Financial Activities - Other Ending Cash $-10,066 Net Income Cash Flow From Financial Activities Net Cash Flow $4,237 Dividends 165 Check Field Stock-Based Compensation $6,864 Addition to Retained Earnings Common Stock Dividends Paid