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 cash flows for fiscal 2018. In the analysis, consider the sources and uses of cash. STRYKER CORPORATIONConsolidated Statements of Cash FlowsFor Year Ended December 31, 2018 (S millions)Operating activitiesNet earnings (loss)..Adjustments to reconcile net earnings to net cash provided by operating activities:Depreciation ..Amortization of intangible assetsShare-based compensationRecall charges, net of insurance proceedsSale of inventory stepped up to fair value at acquisitionDeferred income tax benefit (expense)Changes in operating assets and liabilitiesAccounts receivable$3,5533064171192316(1,582)(60)(385)InventoriesAccounts payableAccrued expenses and other liabilitiesRecall-related payments.Income taxes. .Other, net ....116289(90)(156)44Net cash provided by operating activities.2,610Investing activitiesAcquisitions, net of cash acquiredPurchases of marketable securities.(2,451)(226)394Proceeds from sales of marketable securitiesPurchases of property, plant and equipmentOther investing, net ..(572)(2)Net cash used in investing activities.Financing activitiesProceeds and payments on short-term borrowings, net.Proceeds from issuance of long-term debt..Payments on long-term debtDividends paidRepurchase of common stock.Cash paid for taxes from withheld sharesPayments to purchase noncontrolling interest.Other financing, net...(2,857)(1)3,126(669)(703)(300)(120)(14)10Net cash provided by (used in) financing activities...Effect of exchange rate changes on cash and cash equivalents1,329(8)Change in cash and cash equivalentsCash and cash equivalents at beginning of year1,0742,542Cash and cash equivalents at end of year.$3,616

The answer for the question on analysis of cash flows is discussed hereunder : In a Cash Flow…

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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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