Question

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

Answer 1

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