Chapter 16: Statement of Cash Flows

Part 1 (Use the annual report of NIKE 2017) Please examine the financial statements of your selected company and calculate the free cash flow for the most recent year. Please let us know if your corporation has positive free cash flow. Why is a positive free cash flow considered favorable? Can free cash flow be a negative number? What does a lack of free cash flow indicate for a business? Please indicate why free cash flow may be a better indicator than Cash Flows from Operating Activities of financial strength.

Part 2 Please let us know which section of the Statement of Cash Flows you feel is the most important section.