Staples, Inc., is the world’s leading office products company. Locate the statement of cash flows of Staples for the fiscal year ended January 29, 2011 on the Internet.

Required:
1. In the three years reported, what were Staples’ primary investing activities? How were these activities financed? Be specific.
2. During the most recent fiscal year, Staples purchased certificates of deposit. How were these purchases reported in the statement of cash flows? (Note: This is not an investing activity.)
3. How are issuances of debt securities and issuances of equity securities classified in a statement of cash flows?
4. How are payments to investors in debt securities (interest) and payments to investors in equity securities (dividends) classified in a statement of cash flows? Is this a conceptual inconsistency? Explain.
5. Staples’ statement of cash flows reports expenditures for acquisition of businesses. It also reports additions to long-term debt. Suppose the businesses had been acquired, not with cash, but by exchange for debt securities. Would such a transaction be reported? Explain.