Business, 27.04.2021 16:00 ahicks2004

Time Warner Inc. is a leading media and entertainment company with businesses in television networks, filmed entertainment, and publishing. The company's recent annual report contained the following information (dollars in millions): Net loss $(13,402 )
Depreciation, amortization, and impairments 34,790
Decrease in receivables 1,245
Increase in inventories 5,766
Decrease in accounts payable 445
Additions to equipment 4,377

Required:
a. Based on this information, compute cash flow from operating activities using the indirect method.
b. What were the major reasons that Time Warner was able to report a net loss but positive cash flow from operations? Why are the reasons for the difference between cash flow from operations and net income important to financial analysts?

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