Refer to Research In Motion’s financial statements in Appendix A to answer the following.
1. Is Research In Motion’s statement of cash flows prepared under the direct method or the indirect method? How do you know?
2. For each fiscal year 2010, 2009, and 2008, is the amount of cash provided by operating activities more or less than the cash paid for dividends?
3. What is the largest amount in reconciling the difference between net income and cash flow from operating activities in 2010? In 2009? In 2008?
4. Identify the largest cash inflow and outflow for investing and for financing activities in 2010 and in 2009.