Go to CVS Corporation’s website and find the statement of cash flows in its latest annual report. Compare it with the 2004 statement in the Supplement to Chapter 1 by (1) identifying major changes in operating, investing, and financing activities; (2) reading management’s financial review of cash flows;

and (3) calculating 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.

Group Activity Case Cash Flow Versus Net Income