Interpreting the statement of cash flows Exhibit 5.36 presents a statement of cash flows for Swoosh Shoes Inc., which we derived from actual reports of Nike, Inc., maker of athletic shoes, for three years.
a. Why did Swoosh experience increasing net income but decreasing cash flow from operations during this three-year period?
b. What is the likely explanation for the changes in Swoosh€™s cash flow from investing during the three-year period?
c. How did Swoosh finance its investing activities during the three-year period?
d. Evaluate the appropriateness of Swoosh€™s use of short-term borrowing during2008

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Swoosh Shoes, Inc. Statement of Cash Flows EXHIBIT 5.36 (all dollar amounts in millions) (Problem 42) 2008 2007 2006 Operations $ 243 $ 287 $ 167 Net Income Depreciation and Amortization 34 17 15 Other Addbacks and Subtractions. (5) $ 177 (38) (25) (2) $ 324 Working Capital Provided by Operations (Increase) Decrease in Accounts Receivable (Increase) Decrease in Inventories (Increase) Decrease in Other Operating Current Assets $ 265 (105) (120) (275) (86) (6) (5) Increase (Decrease) in Accounts Payable. Increase (Decrease) in Other Current Operating Liabilities. Cash Flow from Operations 59 36 21 32 22 36 $ 14 $ 127 $ 169 Investing Sale of Property, Plant, and Equipment Acquisition of Property, Plant, and Equipment Acquisition of Investment . Cash Flow from Investing. (165) (42) (87) (1) $ (40) (48) S(211) $ (89 Financing Increase in Short-Term Debt. $ 269 Increase in Long-Term Debt Issue of Common Stack (96) (4) Decrease in Short-Term Debt. Decrease in Long-Term Debt (10) (22) Dividends (41) (26) $ (33) Cash Flow from Financing $ 226 S(119) Change in Cash.. Cash, Beginning of Year. Cash, End of Year $5 $ 10 $29 89 84 74 S 118 $ 84 $89 .. ...