Go to CVS Caremark Corporation’s website and find the statement of cash flows in its latest annual report. Compare it with the 2008 statement in the Supplement to Chapter 1 by doing the following:

1. Identify major changes in operating, investing, and financing activities.

2. Read management’s financial review of cash flows.

3. Calculate the cash flow ratios (cash flow yield, cash flows to sales, cash flows to assets) and free cash flow for the most recent year. How does CVS’s cash flow performance differ between these two years? Be prepared to discuss your conclusions in class.