Let's calculate the **% net change in "Cash, cash equivalents, and restricted cash at end of period"** for: ### 1. From **2019 to 2020** - **2019:** \$17,741 million - **2020:** \$25,935 million \[ \text{Net Change} = \frac{25,935 - 17,741}{17,741} \times 100\% \] \[ = \frac{8,194}{17,741} \times 100\% \] \[ = 46.2\% \] --- ### 2. From **2020 to 2021** - **2020:** \$25,935 million - **2021:** \$20,737 million \[ \text{Net Change} = \frac{20,737 - 25,935}{25,935} \times 100\% \] \[ = \frac{-5,198}{25,935} \times 100\% \] \[ = -20.0\% \] --- ## **Summary Table** | Period | Net Change (\$M) | % Change | |-------------|------------------|--------------| | 2019-2020 | +8,194 | **+46.2%** | | 2020-2021 | -5,198 | **-20.0%** | Let me know if you need calculations for any other line items!

### 1. Introduction Understanding the calculation of net changes over specific periods requires familiarity with financial statement analysis, particularly the cash flow statement. The cash flow statement details the inflows and outflows of cash and cash equivalents within an organization over a given period, categorized into operating, investing, and financing activities. The key focus here is on the "Net increase/(decrease) in cash, cash equivalents, and restricted cash," which reflects the overall change in a company's liquidity position between two periods. Calculating the percentage change involves comparing the net cash position at the end of two consecutive periods. This requires knowledge of the ending cash balances for each period and the mathematical formula for percentage change. Such analysis helps assess the company's liquidity trend, revealing whether the cash position is strengthening or weakening over time. To accurately interpret these changes, it is also crucial to understand the context provided by the financial statements, including the beginning and ending balances, to ensure the percentage change calculation reflects true financial dynamics. **Explanation:** This introduction lays the foundation for understanding the importance of analyzing cash flows, emphasizing how changes in cash balances over periods are indicative of financial health. It clarifies that calculating percentage changes requires end-of-period cash balances, setting the stage for applying the relevant formulas and performing accurate calculations. Recognizing these concepts is essential to interpret the company's liquidity trends effectively. --- ### 2. Presentation of Relevant Formulas Required To Solve The Question The primary formula needed for this calculation is the percentage change formula: \[ \text{Percentage Change} = \frac{\text{End Period Balance} - \text{Start Period Balance}}{\text{Start Period Balance}} \times 100\% \] **Description and Rationale:** - **End Period Balance:** The cash, cash equivalents, and restricted cash at the conclusion of the later period. - **Start Period Balance:** The cash, cash equivalents, and restricted cash at the beginning of that period, which is also the end balance of the previous period. - **Difference (Change):** The numerator captures the absolute change in cash position. - **Division by Start Balance:** Normalizes the change relative to the initial amount, enabling comparison across periods of different sizes. - **Multiplication by 100%:** Converts the ratio into a percentage, facilitating easier interpretation of the magnitude of change. This formula is fundamental because it provides a measure of relative growth or decline, which is more meaningful than absolute change alone, especially when comparing periods with different total cash balances. --- ### 3. A Detailed Step-by-Step Solution **Step 1: Identify the relevant balances for each period** - For **2019**, the ending balance is \$17,741 million. - For **2020**, the ending balance is \$25,935 million. - For **2020**, the ending balance is \$25,935 million. - For **2021**, the ending balance is \$20,737 million. *Supporting Statement:* These figures are obtained directly from the statement, representing the cash, cash equivalents, and restricted cash at the end of each fiscal year. --- **Step 2: Calculate the net change from 2019 to 2020** \[ \text{Net Change (2019-2020)} = 25,935 - 17,741 = 8,194 \text{ million} \] *Supporting Statement:* This absolute change indicates an increase in cash holdings over the period. --- **Step 3: Calculate the percentage change from 2019 to 2020** \[ \text{Percentage Change} = \frac{8,194}{17,741} \times 100\% \approx 0.462 \times 100\% = 46.2\% \] *Supporting Statement:* Dividing the absolute change by the initial balance normalizes the change, providing a relative measure of growth or decline, which is 46.2% increase over the period. --- **Step 4: Calculate the net change from 2020 to 2021** \[ \text{Net Change (2020-2021)} = 20,737 - 25,935 = -5,198 \text{ million} \] *Supporting Statement:* A negative value indicates a decrease in cash holdings over this period. --- **Step 5: Calculate the percentage change from 2020 to 2021** \[ \text{Percentage Change} = \frac{-5,198}{25,935} \times 100\% \approx -0.200 \times 100\% = -20.0\% \] *Supporting Statement:* This reflects a 20.0% decrease in cash holdings, indicating a reduction in liquidity during this period. --- ### **Conclusion** The percentage change in "Cash, cash equivalents, and restricted cash" from **2019 to 2020** is approximately **+46.2%**, indicating a significant increase in cash holdings. Conversely, from **2020 to 2021**, the change is approximately **-20.0%**, reflecting a notable decrease in cash position. These calculations provide a clear view of the company's liquidity trend over the specified periods based on the ending cash balances.