| Cash flow from operating activitiesIn millionsIn millions For the year ended 2012For the year ended 2011Net (loss) earnings$(12,650)$7,074Depreciation and amortization5,0954,984Impairment of goodwill and purchased intangible assets18,035885Stock-based compensation expense635685Provision for doubtful accounts14281Provision for inventory277217Restructuring charges2,266645Deferred taxes on earnings(711)166Excess tax benefit from stock-based competition(12)(163)Other, net265(46)Accounts and financing receivables1,269(227)Inventory890(1,252)Accounts payable(1,414)275Taxes on earnings(320)610Restructuring(840)(1,002)Other assets and liabilities(2,356)(293)Net cash provided by operating activities10,57112,639Cash flows from investing activities: Investment in property, plant, and equipment(3,706)(4,539)Proceeds from sale of property, plant, and equipment617999Purchases of available-for-sale securities and other investments(972)(96)Maturities and sales of available-for-sale securities and other investment66268Payments in connection with business acquisitions, net of cash acquired(141)(10,480)Proceeds from business divestiture, net8789Net cash used in investing activities(3,453)(13,959)Cash flow from financing activities: (Payments) issuance of commercial paper and notes payable, net(2,775)(1,270)Issuance of debt5,15411,942Payment of debt(4,333)(2,336)Issuance of common stock under employee stock plans716896Repurchase of common stock(1,619)(10,117)Excess tax benefit from stock-based compensation12163Cash dividends paid(1,015)(844)Net cash used in financing activities(3,860)(1,566)Increase (decrease) in cash and cash equivalents3,258(2,886)Cash and cash equivalents at beginning of period8,04310,929Cash and cash equivalents at end of period$11,301$8,043 Required:1) Please calculate the percentage increase or decrease in cash for the total line of the operating, investing, and financing sections bolded above and explain the major reasons for the increase or decrease for each of these sections. 2) Please calculate the free cash flow for 2012 and explain the meaning of this ratio. |
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