In Its 2018 Annual Report to Shareholders, Henchman & Co-What Method (Direct or Indirect) Does Henchman & Co

The Answer of In Its 2018 Annual Report to Shareholders, Henchman & Co-What Method (Direct or Indirect) Does Henchman & Co

In Its 2018 Annual Report to Shareholders, Henchman & Co-What Method (Direct or Indirect) Does Henchman & Co

The Answer of In Its 2018 Annual Report to Shareholders, Henchman & Co-What Method (Direct or Indirect) Does Henchman & Co

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In Its 2018 Annual Report to Shareholders, Henchman & Co

question 156

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In its 2018 Annual Report to Shareholders, Henchman & Co. provided the following Statement of Cash Flows:
$In its 2018 Annual Report to Shareholders, Henchman & Co. provided the following Statement of Cash Flows: \begin{array} { | l | r | r | } \hline \text { Years ended December 31 (\$ in millions) } & 2018 & 2017 \\ \hline \text { Financing Activities } & & \\ \hline \text { Proceeds from issuance of long-term debt } & 1,491 & \\ \hline \text { Proceeds from equity security units } & 690 & \\ \hline \text { Borrowings under lines of credit } & 1,173 & \\ \hline \text { Repayment of borrowings under lines of Credit } & ( 1,306 ) & ( 175 ) \\ \hline \text { Principal payments of long-term debt/lease } & & \\ \text { agreements } & ( 119 ) & ( 485 ) \\ \hline \text { Proceeds from issuance of stock } & { 8 2 5 } & 19 \\ \hline \text { Dividends paid } & ( 158 ) & ( 114 ) \\ \hline \text { Other financing activities } & \underline{( 64 )} & -\\ \hline \text { Net cash provided by (used in) financing } & & \\ \text { activities } & { 2 , 5 3 2 } & ( 755 ) \\ \hline \text { Increase in cash and cash equivalents } & 145 & 177 \\ \hline \text { Cash and cash equivalents at beginning of year } & \underline{319} & \underline{142} \\ \hline \text { Cash and cash equivalents at end of year } & \underline{\$ 464} & \$ \underline{319} \\ \hline \end{array} -What method (direct or indirect) does Henchman & Co. use to present its Statement of Cash Flows? Explain how you can determine which method is used.$
$\begin{array} { | l | r | r | } \hline \text { Years ended December 31 (\$ in millions) } & 2018 & 2017 \\\hline \text { Financing Activities } & & \\\hline \text { Proceeds from issuance of long-term debt } & 1,491 & \\\hline \text { Proceeds from equity security units } & 690 & \\\hline \text { Borrowings under lines of credit } & 1,173 & \\\hline \text { Repayment of borrowings under lines of Credit } & ( 1,306 ) & ( 175 ) \\\hline \text { Principal payments of long-term debt/lease } & & \\\text { agreements } & ( 119 ) & ( 485 ) \\\hline \text { Proceeds from issuance of stock } & { 8 2 5 } & 19 \\\hline \text { Dividends paid } & ( 158 ) & ( 114 ) \\\hline \text { Other financing activities } & \underline{( 64 )} & -\\\hline \text { Net cash provided by (used in) financing } & & \\\text { activities } & { 2 , 5 3 2 } & ( 755 ) \\\hline \text { Increase in cash and cash equivalents } & 145 & 177 \\\hline \text { Cash and cash equivalents at beginning of year } & \underline{319} & \underline{142} \\\hline \text { Cash and cash equivalents at end of year } & \underline{\$ 464} & \$ \underline{319} \\\hline\end{array}$

-What method (direct or indirect) does Henchman & Co. use to present its Statement of Cash Flows? Explain how you can determine which method is used.

Definitions:

Three-chambered Heart

A type of heart structure found in amphibians and reptiles, consisting of two atria and one ventricle.

Circulatory System

The body's network of blood, blood vessels, and heart responsible for pumping blood to all living cells, delivering oxygen and nutrients while removing waste products.

Amphibian

A cold-blooded vertebrate animal that is born in water and breathes with gills, but develops lungs and lives on land as an adult.

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, typically measured in the arteries.