Comparing Cash Flows Cash flow information is provided below for two companies in the health care products industry. Cash outflows are shown in parentheses.
|
(In millions) |
2001 |
2000 |
1999 |
Total |
|
Johnson & Johnson |
||||
|
Operating activities |
$8,864 |
$6,903 |
$5,920 |
$21,687 |
|
Investing activities |
4,093 |
2,665 |
3,093 |
9,851 |
|
Financing activities |
5,251 |
2,425 |
2,347 |
10,023 |
|
Warner Lambert |
||||
|
Operating activities |
$9,080 |
$7,687 |
$6,131 |
$22,898 |
|
Investing activities |
4,312 |
3,641 |
2,817 |
10,770 |
|
Financing activities |
5,071 |
3,447 |
3,869 |
12,387 |
Required Analyze the companies’ cash flows for 1999 to 2001 and for the three years in total. Explain how the two companies compare in terms of their cash flow trends.