What is the largest investing activity outflow during the most recent year? (Indicate reconciling item and amount.) What was this transaction? JOHNSON & JOHNSON AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(Dollars in Millions) (Note 1)201920182017Cash flows from operating activitiesNet earnings15,11915,2971,300Adjustments to reconcile net eamings to cash flows from operating activities:Depreciation and amortization of property and intangibles7,0096,9295,642Stock based compensation977978962Asset write-downs1,0961,258795Gain on sale of assets/businesses(2,154)(1,217)(1,307)Deferred tax provision(2,476)(1,016)2,406Accounts receivahle allowances(20)(31)17Changes in assets and liabilities, net of effects from acquisitions and divestitures:Increase in accounts receivable(289)(1,185)(633)(Increase)/Decrease in inventories(277)(644)581Increase in accounts payable and accrued liabilities4,0603,9512,725Increase in other current and non-current assets(1,054)(275)(411)Increase/(Decrease) in other current and non-current liabilities1,425(1,844)8,979Net cash flows from operating activities23,41622,20121,056Cash flows from investing activitiesAdditions to property, plant and cquipment(3,498)(3,670)(3,279)Proceeds from the disposal of assets/businesses, net3,2653,2031,832Acquisitions, net of cash acquired (Note 20)(5,810)(899)(35,151)Purchases of investments(3,920)(5,626)(6,153)Sales of investments3,3874.28928,117Proceeds from credit support agreementsOther33844(464)(234)Net cash used by investing activities(6,194)(3,167)(14,868)Cash flows from financing activitiesDividends to shareholders(9,917)(9,494)(8,943)(6,358)Repurchase of common stockProceeds from short-term debt(6,746)(5,868)3980869Repayment of short-term debt(100)(2,479)(1,330)Proceeds from long-term debt, net of issuance costs358,992Repayment of long-term debt(2,823)(1,555)(1,777)Proceeds from the exercise of stock options/employec withholding tax on stock awards, net9549491,062Other575(148)(188)Net cash used by financing activities(18,015)(18,510)(7,673)Effect of exchange rate changes on cash and cash equivalents(9)(241)337(Decrease)/Increase in cash and cash equivalents(802)283(1,148)Cash and cash equivalents, beginning of year (Note 1)18,10717,82418,972Cash and cash equivalents, end of year (Note 1)17,30518,10717,824Supplemental cash flow dataCash paid during the year for.Interest9951,049960Interest, net of amount capitalized925963866Income taxes4,1914,5703,312

Investing activities include the activities that are related to investing within or outside the…

Answered: What is the largest investing activity…

What is the largest investing activity outflow during the most recent year? (Indicate reconciling item and amount.) What was this transaction?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 40E

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