Interpreting a statement of cash flows based on the direct method for presenting cash flow from operations

Question:

Interpreting a statement of cash flows based on the direct method for presenting cash flow from operations Exhibit 5.32 shows the consolidated income statements for CVS Caremark Corporation for three recent years. CVS Caremark uses the direct method for presenting its cash flows from operations, which appears in Exhibit 5.33. In the following, we refer to the 52 weeks ending December 29, 2007, as the year 2007.

a. What was the change in accounts receivable during 2007?

b. Accounts payable for inventories increased by $181.4 during 2007. What was the change in inventories during 2007?

c. By how much did the amount paid for interest during 2007 differ from interest expense? Give the amount and indicate whether the amount paid exceeded, or was less than, expense.

d. Note that income increased by a bit more than 10% between 2005 and 2006 but nearly doubled between 2006 and 2007. What cause(s) can u suggest for this dramaticchange?

CVS Caremark Corporation Consolidated Statements of Operations EXHIBIT 5.32 Fscal Year Ended Dec. 29, 2007 tsz woeks Fis

Interpreting a statement of cash flows based

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