Free cash flow and EBITDA:

How does RadioShack define free cash flow?

RadioShacks free cash flow in 2007 was almost twice as much as free cash flow in 2005. (The 2007 cash flow statement was provided to you in Canvas.) Is this good or bad? Explain your answer.

RadioShacks free cash flow in 2008 and 2009 dropped dramatically from 2007. (The 2009 cash flow statement was provided to you in Canvas.) What contributed to this decrease? Is this good or bad? Explain your answer.

Is free cash flow a good measure of operations? How can managements year-end decisions directly affect the amount of free cash flow reported to shareholders?

The 2011 Form 10-K shows a reconciliation of net income to EBITDA. What is EBITDA? Do you think EBITDA is a better measure of managements performance than free cash flow? Why or why not?

RadioShacks annual reports

http://www.radioshackcatalogs.com/annual_reports.html