Refer to Polaris’ financial statements in Appendix A to answer the following.

1. Is Polaris’ statement of cash flows prepared under the direct method or the indirect method? How do you know?

2. For each year 2011, 2010, and 2009, 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 2011? In 2010? In 2009?

4. Identify the largest cash inflow and outflow for investing and for financing activities in 2012 and in 2010.

Fast Forward 5. Obtain Polaris’ financial statements for a year ending after December 31, 2011, from either its Website (Polaris.coni) or the SEC’s database (www.SEC.gov). Since December 31, 2011, what are Polaris’ largest cash outflows and cash inflows in the investing and in the financing sections of its statement of cash flows?