Stryker paid $300 million to repurchase its common stock in fiscal 2018 and, in addition, paid dividends of $703 million. Thus, it paid $1.003 million of cash to its stockholders during the year. How do we evaluate that use of cash relative to other possible uses for the company's cash?
Stryker paid $300 million to repurchase its common stock in fiscal 2018 and, in addition, paid dividends of $703 million. Thus, it paid $1.003 million of cash to its stockholders during the year. How do we evaluate that use of cash relative to other possible uses for the company's cash?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A) Stryker paid $300 million to repurchase its common stock in fiscal 2018 and, in addition, paid dividends of $703 million. Thus, it paid $1.003 million of cash to its stockholders during the year. How do we evaluate that use of cash relative to other possible uses for the company's cash?
B) Provide an overall assessment of the company's

Transcribed Image Text:STRYKER CORPORATION
Consolidated Statements of Cash Flows
For Year Ended December 31, 2018 (S millions)
Operating activities
Net earnings (loss)..
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation ..
Amortization of intangible assets
Share-based compensation
Recall charges, net of insurance proceeds
Sale of inventory stepped up to fair value at acquisition
Deferred income tax benefit (expense)
Changes in operating assets and liabilities
Accounts receivable
$3,553
306
417
119
23
16
(1,582)
(60)
(385)
Inventories
Accounts payable
Accrued expenses and other liabilities
Recall-related payments.
Income taxes. .
Other, net ....
116
289
(90)
(156)
44
Net cash provided by operating activities.
2,610
Investing activities
Acquisitions, net of cash acquired
Purchases of marketable securities.
(2,451)
(226)
394
Proceeds from sales of marketable securities
Purchases of property, plant and equipment
Other investing, net ..
(572)
(2)
Net cash used in investing activities.
Financing activities
Proceeds and payments on short-term borrowings, net.
Proceeds from issuance of long-term debt..
Payments on long-term debt
Dividends paid
Repurchase of common stock.
Cash paid for taxes from withheld shares
Payments to purchase noncontrolling interest.
Other financing, net...
(2,857)
(1)
3,126
(669)
(703)
(300)
(120)
(14)
10
Net cash provided by (used in) financing activities...
Effect of exchange rate changes on cash and cash equivalents
1,329
(8)
Change in cash and cash equivalents
Cash and cash equivalents at beginning of year
1,074
2,542
Cash and cash equivalents at end of year.
$3,616
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