INTERPRETING STATEMENTS OF CASH FLOWS. Visit your library and locate the financial statements for the last 4 years for a company of your choice.

REQUIRED:

1. Prepare a comparative statement of cash flows for the most recent 4 years. (Use a format similar to that used for the Toys “R” Us analysis in the chapter; of course, if your company uses the direct method, the presentation of operating cash flows will differ from that of Toys “R” Us.)

Describe the major sources of cash employed by the company.

. Describe the major uses of cash by the company.

Are the time commitments of inflows and outflows well matched by the company?

Are debt and equity likely to be available as inflows of cash in the near future?

What are the trends in inflows and outflows?

. What projections would you make regarding inflows and outflows in the near future?