The 2008 statement of cash flows for technology company Hewlett-Packard reported net earnings of $8.3 billion and net cash provided by operating activities of $14.6 billion. Depreciation and amortization totaled $3.4 billion. HP used the indirect form of presenting the statement of cash flows.

(a) How is depreciation disclosed on the statement of cash flows? Why?

(b) Why doesn’t net earnings plus depreciation equal net cash provided by operating activities?

(c) Provide an estimate of the net change in current assets and current liabilities for HP during 2008.