In Its 2018 Annual Report to Shareholders, Henchman & Co-(A) What Is the Most Significant Change in Operating Cash

The Answer is (a.) Cash payments to suppliers and employees increased from $7,250 million to $13,251 million. (b.) Accounts Payable and Wages/Salaries Payable probably are the accounts that would have changed.

In Its 2018 Annual Report to Shareholders, Henchman & Co-(A) What Is the Most Significant Change in Operating Cash

The Answer is (a.) Cash payments to suppliers and employees increased from $7,250 million to $13,251 million. (b.) Accounts Payable and Wages/Salaries Payable probably are the accounts that would have changed.

Solved

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:
$In its 2018 Annual Report to Shareholders, Henchman & Co. provided the following Statement of Cash Flows: \begin{array} { | l | r | r | } \hline \text { Years ended December 31 (\$ in millions) } & 2018 & 2017 \\ \hline \text { Financing Activities } & & \\ \hline \text { Proceeds from issuance of long-term debt } & 1,491 & \\ \hline \text { Proceeds from equity security units } & 690 & \\ \hline \text { Borrowings under lines of credit } & 1,173 & \\ \hline \text { Repayment of borrowings under lines of Credit } & ( 1,306 ) & ( 175 ) \\ \hline \text { Principal payments of long-term debt/lease } & & \\ \text { agreements } & ( 119 ) & ( 485 ) \\ \hline \text { Proceeds from issuance of stock } & { 8 2 5 } & 19 \\ \hline \text { Dividends paid } & ( 158 ) & ( 114 ) \\ \hline \text { Other financing activities } & \underline{( 64 )} & -\\ \hline \text { Net cash provided by (used in) financing } & & \\ \text { activities } & { 2 , 5 3 2 } & ( 755 ) \\ \hline \text { Increase in cash and cash equivalents } & 145 & 177 \\ \hline \text { Cash and cash equivalents at beginning of year } & \underline{319} & \underline{142} \\ \hline \text { Cash and cash equivalents at end of year } & \underline{\$ 464} & \$ \underline{319} \\ \hline \end{array} -(a.) What is the most significant change in operating cash outflow activity in 2018 relative to 2017? (b.) What balance sheet accounts would likely have changed during 2018 in relation to the cash flow change that you identify in (a)?$
$\begin{array} { | l | r | r | } \hline \text { Years ended December 31 (\$ in millions) } & 2018 & 2017 \\\hline \text { Financing Activities } & & \\\hline \text { Proceeds from issuance of long-term debt } & 1,491 & \\\hline \text { Proceeds from equity security units } & 690 & \\\hline \text { Borrowings under lines of credit } & 1,173 & \\\hline \text { Repayment of borrowings under lines of Credit } & ( 1,306 ) & ( 175 ) \\\hline \text { Principal payments of long-term debt/lease } & & \\\text { agreements } & ( 119 ) & ( 485 ) \\\hline \text { Proceeds from issuance of stock } & { 8 2 5 } & 19 \\\hline \text { Dividends paid } & ( 158 ) & ( 114 ) \\\hline \text { Other financing activities } & \underline{( 64 )} & -\\\hline \text { Net cash provided by (used in) financing } & & \\\text { activities } & { 2 , 5 3 2 } & ( 755 ) \\\hline \text { Increase in cash and cash equivalents } & 145 & 177 \\\hline \text { Cash and cash equivalents at beginning of year } & \underline{319} & \underline{142} \\\hline \text { Cash and cash equivalents at end of year } & \underline{\$ 464} & \$ \underline{319} \\\hline\end{array}$

-(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)?

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National Mediation Board

A federal agency that facilitates and mediates labor-management relations within the United States' railroad and airline industries.

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A 1926 United States federal law that governs labor relations in the railway and airline industries, aiming to avoid service disruptions.

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