Obtain a copy of a large corporation's annual report and refer to the statement of cash flows.

Required:

a. Did the company use the direct method or the indirect method of disclos¬ ing cash flows?

b. Comment on the relationship between cash flows from operations and net income for the year of the statement and the previous year.

c. What were the most significant sources of cash from operating activities during the period covered by the statement? What percentage of total cash inflows do these sources represent? Answer the same question for the previous period.

d. Was the cash from operations more than or less than dividends dur¬ ing the period covered by the statement and the previous period?

e. What were the firm's major investing activities during the period covered by the statement and the previous period? Were cash flows from opera¬ tions more or less than cash flows from investing activities for the com¬ pany in question?

f. What were the most significant cash flows from financing activities dur¬ ing the year of the statement and the previous year?

g. Review the management discussion and analysis sections of the financial statements to determine if any additional information is available con¬ cerning the company's investment or financing strategy.