Net earnings plus added back depreciation have contributed to the bulk of cash flow from operating activities, amounting to 3,883+1,682= $5,565 million. Increases/decreases in inventory, receivables, accounts payable, and other miscellaneous items have contributed the remaining $1,068M. Thus the increase has come mostly from the profits earned during the year.
Out of the increase realized through operating activities, $1,129M have been used in investing activities, the major portion having been invested in capital expenditures. A small part has been accounted by sale of assets and property, and from sale of business.
Financing activities have accounted for $4,048M of the outflow from the total of $6,651M contributed by operating activities. The bulk of this amount has gone in repurchase of stocks and in payment of dividends.
The increase in cash and cash equivalents during the year 2011 was $364 million. The contribution from operating activities was $4,351M, of which the major portion was from net operating income ($1,839M) and depreciation ($1,579M). The net increase in cash and cash equivalents on account of these two items was $3,418M. The remaining amount of $931M has come from changes in current assets/liabilities and miscellaneous items. ...Show more