The following is the 2016 statement of cash flows for PulteGroup, Inc.
Required:
a. In determining operating cash flow in 2016, the company includes share-based compensation expense of $22,228 thousand. Why does the company add this amount?
b. The operating section in 2016 includes an increase in cash of $75,257 for "Accounts payable, accrued and other liabilities." Explain this reconciling item.
c. Does the composition of PulteGroup's cash flow statement present a "healthy" picture? Explain.

Question

The following is the 2016 statement of cash flows for PulteGroup, Inc. 
  Required: 
a. In determining operating cash flow in 2016, the company includes share-based compensation expense of $22,228 thousand. Why does the company add this amount?
b. The operating section in 2016 includes an increase in cash of $75,257 for "Accounts payable, accrued and other liabilities." Explain this reconciling item.
c. Does the composition of PulteGroup's cash flow statement present a "healthy" picture? Explain.

Quizplus · Accepted Answer

The Answer of The following is the 2016 statement of cash flows for PulteGroup, Inc. 
  Required: 
a. In determining operating cash flow in 2016, the company includes share-based compensation expense of $22,228 thousand. Why does the company add this amount?
b. The operating section in 2016 includes an increase in cash of $75,257 for "Accounts payable, accrued and other liabilities." Explain this reconciling item.
c. Does the composition of PulteGroup's cash flow statement present a "healthy" picture? Explain.

The Following Is the 2016 Statement of Cash Flows for PulteGroup