KB Home is one of the largest homebuilders in the United States. The cash flows provided by investing activities section of the company’s statement of cash flows for the years 2006-2008 follow (in $000).

Required

a. How have cash flows provided by investing activities changed over the three-year period?

b. If any of these changes continue in the coming years, what concerns would you have about KB Home’s future?

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joint venture Sale of discontinued operations, net of cash divested Sale of investment in unconsolidated Change in restricted cash 2008 2007 2006 $739,764 $ 57,767 $(115,404) Investments in unconsolidated joint ventures (59,625) (85,188) (179,184) Sales (purchases) of property and equipment, net 7,073 685 Other, net (17,638) 772 Net cash provided (used) by investing activities-continuing operations (167,956) $655,261 $(138,283) Net cash used by investing activities- discontinued operations (12,112) (4,477) Net cash provided (used) by investing activities $(167,956) $643,149 $(142,760)