Question

# Using the incomplete balance sheet and income statement, What is cash provided by operations during 2016?(do...

Using the incomplete balance sheet and income statement, What is cash provided by operations during 2016?(do not round intermediate calculations. Enter answer in millions rounded 2 decimal places)

 BALANCE SHEET AT END OF YEAR (Figures in \$ millions) Assets 2015 2016 Liabilities and Shareholders' Equity 2015 2016 Current assets \$97 175 Current liabilities \$64 81 Net fixed assets 870 970 Long-term debt 635 820
 INCOME STATEMENT, 2016 (Figures in \$ millions) Revenue 1,985 Cost of goods sold 1,065 Depreciation 385 Interest expense 247

First we will calculate the net income as per below:

Net income = Revenue - Cost of goods sold - Depreciation - Interest expense

Putting the values in the above equation, we get,

Net income = \$1985 - \$1065 - \$385 - \$247

Net income = \$288

Now, Cash from operations can be found out by the following statement of cash flows:

Statement of cash flows (partial) for 2016:

 Description Amount Cash from operations: Net income \$288 Adjustments to reconcile net income to net cash from operating activities Add: Depreciation \$385 Less: Increase in current assets (\$78) Add: Increase in current liabilities \$17 Net cash provided by operating activities \$612

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