In Its 2018 Annual Report to Shareholders, Henchman & Co

question 2

Essay

In its 2018 Annual Report to Shareholders, Henchman & Co. provided the following Statement of Cash Flows:

$$\begin{array} { | l | r | r | } \hline \text { Years ended December 31 (\$ in millions) } & 2018 & 2017 \\\hline \text { Financing Activities } & & \\\hline \text { Proceeds from issuance of long-term debt } & 1,491 & \\\hline \text { Proceeds from equity security units } & 690 & \\\hline \text { Borrowings under lines of credit } & 1,173 & \\\hline \text { Repayment of borrowings under lines of Credit } & ( 1,306 ) & ( 175 ) \\\hline \text { Principal payments of long-term debt/lease } & & \\\text { agreements } & ( 119 ) & ( 485 ) \\\hline \text { Proceeds from issuance of stock } & { 8 2 5 } & 19 \\\hline \text { Dividends paid } & ( 158 ) & ( 114 ) \\\hline \text { Other financing activities } & \underline{( 64 )} & -\\\hline \text { Net cash provided by (used in) financing } & & \\\text { activities } & { 2 , 5 3 2 } & ( 755 ) \\\hline \text { Increase in cash and cash equivalents } & 145 & 177 \\\hline \text { Cash and cash equivalents at beginning of year } & \underline{319} & \underline{142} \\\hline \text { Cash and cash equivalents at end of year } & \underline{\$ 464} & \$ \underline{319} \\\hline\end{array}$$

-(a.) What is the most significant change in operating cash outflow activity in 2018 relative to 2017?
(b.) What balance sheet accounts would likely have changed during 2018 in relation to the cash flow change that you identify in (a)?

Identify and understand group consensus and its impact on research findings.

Grasp strategies to encourage open and productive focus group discussions.

Understand how to quantify data collection in focus group research settings.

Determine the appropriate duration and setting of focus group sessions based on the target participant group.

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Definitions:

Date Of Record

A specific date set by a company on which the shareholders of record are entitled to receive a dividend or other distribution.

Dividend

A payment made by a corporation to its shareholders, usually derived from profits.

Stock Owners

Individuals or entities that hold shares of stock in a corporation, representing partial ownership of that corporation.

Par Preferred Stock

Preferred shares of a company's stock with a fixed face value that typically determines dividend payments.