From Appendix E,“Reebok International Ltd.,” review Reebok’s cash flow statement and income statement.

Required

a. Evaluate Reebok’s cash flow from operations. Calculate the relevant cashbased ratios from this chapter.

b. Compare Reebok’s cash flow from operations to its “income before income taxes and minority interest.”Prepare a graph to help show trends in each.

c. Describe Reebok’s cash management strategies as revealed in the operating, financing, and investing activities sections of its cash flow statement.

d. Write a short memo to a potential investor in which you critique Reebok’s cash management strategies. Contrast predicted cash flow from operations with predicted income before income taxes and minority interest.What evidence supports the view that Reebok will increase its operating cash flows and its income before income taxes and minority interest?