Reference no: EM131834642

Given the following income statement and balance sheet data, select which items would be included in presenting the cash flow from operating activities section of the associated statement of cash flows:

Income Statement ($ millions)	2017
Sales	$50,000
Less: Cost of goods sold	33,400
Gross profits	16,600
Less: Cash operating expenses	13,600
Less: Depreciation expense	920
Less: Amortization of intangible assets	80
Operating profits (EBIT)	2,000
Less: Interest expense	290
Equity in earnings (loss) of affiliate	(50)
Gain (loss) on sale of fixed assets	80
Earnings before tax expense	1,740
Income tax expense	540
Net income	$1,200

 

Balance Sheet ($ millions)	2017	2016			2017	2016
Cash & equivalents	$500	$600		Accounts payable	$1,820	$2,200
Marketable securities	450	360		Other accrued expenses	2,180	2,050
Net receivables	4,200	4,050		Current portion of long-term debt	330	490
Inventories	6,110	6,190		Short-term debt	300	190
Other current assets	820	580		Other current liabilities	620	760
Total current assets	12,080	11,780		Total current liabilities	5,250	5,690
Gross fixed assets	22,320	20,860		Long-term debt	5,750	5,630
Less: Accum. depreciation	10,540	10,100		Deferred taxes	2,200	2,130
Net fixed assets	11,780	10,760		Other long-term liabilities	1,900	1,750
Investments in affiliates	480	530		Total liabilities	15,100	15,200
Intangible assets	600	680		Common stock	500	400
Other long-term assets	60	250		Additional paid-in capital	1,700	1,200
Total assets	$25,000	$24,000		Retained earnings	7,700	7,200
				Total stockholders' equity	9,900	8,800
				Total liabilities and equity	$25,000	$24,000

Add-back depreciation expense of $920

subtract depreciation expense of $920

add-back amortization of intangible assets of $80

subtract amortization of intangible assets of $80

subtract earnings recognized on investments in affiliates (equity in earnings of affiliate) of $50

add earnings recognized on investments in affiliates (equity in earnings of affiliate) of $50

add change in receivables of $150

subtract change in receivables of $150

add change in inventories of $80

subtract change in inventories of $80

add change in other current assets of $240

subtract change in other current assets of $240

add change in other noncurrent assets of $190

subtract change in other noncurrent assets of $190

add change in accounts payable of $380

subtract change in accounts payable of $380

add change in accrued expenses of $130

subtract change in accrued expenses of $130

add change in other current liabilities of $140

subtract change in other current liabilities of $140

add change in deferred taxes of $70

subtract change in deferred taxes of $70

add change in other noncurrent liabilities of $150

subtract change in other noncurrent liabilities of $150

add-back interest expense of $290

add gain on sale of fixed assets of $80

subtract gain on sale of fixed assets of $80