Using the Statement of Cash flow provided, answer the following:
Cash Flow Statement for Company X
Year ended January 31, 2017
Fiscal Years Ended January 31, 2017 2016 2015 Amoures in millions) Cash flows from operating activities: Consolidated net income Income from discontinued operations net of income taxes $14,293 $ 15.000 17.099 285) 14,293 150B0 16 814 10,080 9,454 761 1672 (503) 206 Income from continuing operations Adjustments to reconcile income from continuing operations to net cash provided by operating activities: Depreciation and amortization Deferred income taxes Other operating activities Changes in certain assets and liabilities, net of effects of acquisitions: Receivables.net Inventories Accounts payable Accrued liabilities Accrued income taxes Net cash provided by operating activities (19 (402) 1,021 3.942 1.137 (703) (569) 1.220 2.678 2008 1303 1249 166 31,530 27389 28.564 (10,619) (11477) 635 (12,174) 570 671 Cash flows from investing activities: Payments for property and equipment Proceeds from the disposal of property and equipment Proceeds from the disposal of certain operations Purchase of available for sale securities Investment and business acquisitions net of cash acquired Other investing activities Net cash used in investing activities 662 (1,901) (2,463) (122) 192) (11,125 (13,987) (10675) 1.235 Cash flows from financing activities: Net change in short-term borrowings Proceeds from issuance of long-term debt Payments of long-term debt Dividends paid Purchase of Company stock Dividends paid to noncontrolling interest Purchase of noncontrolling interest Other financing activities Net cash used in financing activities (1,673) 137 12.055) (6,216) (8.298) 1479) 190) (255) (18,929) 14,432) 16.294) (4,112) (719) (1326) 16,288 5.174 3,904 16.185 (1,015) 16000 11.844) 513) 409 (16,122) (15,071) (452) (1022) 1514 1.854 Effect of exchange rates on cash and cash equivalents Net increase decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year (1,838) 8,705 (430) 9,135 8.705 7281 $ 6,867 S $ 9,135 Supplemental disclosure of cash flow information: Income taxes paid Interest paid 4.507 8,1118 ,169 25402 433 2.351 Required: 1) Did the company use the direct or indirect method of disclosing cash flows? (2 mark) 2) Comment on the relationship between cash flow from operations and net income for the year of the statement and the previous year. (2 marks) 3) What was the most significant source of cash from operating activities during the period covered by the statement and the previous period? (2 marks) 4) What were the firms major investing activities during the period covered by the statement and the previous period? Were cash flows from operations more or less than cash flows from investing activities? (2 marks) 5) What were the most significant cash flows from financing activities during the year of the statement and the previous year? (2 marks)
