What method does Johnson & Johnson use for the Operating Section of the Statement of Cash Flows? **JOHNSON & JOHNSON AND SUBSIDIARIES****CONSOLIDATED STATEMENTS OF CASH FLOWS**(Dollars in Millions) (Note 1)---### Cash Flows from Operating Activities- **Net earnings** - 2019: $15,119 - 2018: $15,297 - 2017: $1,300- **Adjustments to reconcile net earnings to cash flows from operating activities:** - Depreciation and amortization of property and intangibles - 2019: $7,009 - 2018: $6,929 - 2017: $5,642 - Stock-based compensation - 2019: $977 - 2018: $978 - 2017: $962 - Asset write-downs - 2019: $1,906 - 2018: $1,258 - 2017: $795 - Gain on sale of assets/businesses - 2019: $(2,154) - 2018: $(1,217) - 2017: $(1,307) - Deferred tax provision - 2019: $(2,476) - 2018: $(1,016) - 2017: $2,406 - Accounts receivable allowances - 2019: $(70) - 2018: $31 - 2017: $17- **Changes in assets and liabilities, net of effects from acquisitions and divestitures:** - Increase in accounts receivable - 2019: $(289) - 2018: $(1,185) - 2017: $(633) - (Increase)/Decrease in inventories - 2019: $(277) - 2018: $(644) - 2017: $581 - Increase in accounts payable and accrued liabilities - 2019: $4,600 - 2018: $3,951 - 2017: $2,725 - Increase in other current and non-current assets - 2019: $(1,054) - 2018: $(275)

Statement of Cash Flow: Statement of cash flow is one of the main financial statements which reports…

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What method does Johnson & Johnson use for the Operating Section of the Statement of Cash Flows?

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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Question

What method does Johnson & Johnson use for the Operating Section of the Statement of Cash Flows?

**JOHNSON & JOHNSON AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

(Dollars in Millions) (Note 1)

---

### Cash Flows from Operating Activities

- **Net earnings**
- 2019: $15,119
- 2018: $15,297
- 2017: $1,300

- **Adjustments to reconcile net earnings to cash flows from operating activities:**
- Depreciation and amortization of property and intangibles
- 2019: $7,009
- 2018: $6,929
- 2017: $5,642
- Stock-based compensation
- 2019: $977
- 2018: $978
- 2017: $962
- Asset write-downs
- 2019: $1,906
- 2018: $1,258
- 2017: $795
- Gain on sale of assets/businesses
- 2019: $(2,154)
- 2018: $(1,217)
- 2017: $(1,307)
- Deferred tax provision
- 2019: $(2,476)
- 2018: $(1,016)
- 2017: $2,406
- Accounts receivable allowances
- 2019: $(70)
- 2018: $31
- 2017: $17

- **Changes in assets and liabilities, net of effects from acquisitions and divestitures:**
- Increase in accounts receivable
- 2019: $(289)
- 2018: $(1,185)
- 2017: $(633)
- (Increase)/Decrease in inventories
- 2019: $(277)
- 2018: $(644)
- 2017: $581
- Increase in accounts payable and accrued liabilities
- 2019: $4,600
- 2018: $3,951
- 2017: $2,725
- Increase in other current and non-current assets
- 2019: $(1,054)
- 2018: $(275)

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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