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

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

FINANCIAL ACCOUNTING
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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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)
Transcribed Image Text:**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)
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