Instructions:

Attached is a spreadsheet with 13 years of the cash flow statement from Sears. Review the cash flow statement information for elements that would affect future earnings.

Submit a paper providing the following:

• For the Sears Company, provide a brief detail how the company remains open after burning through over $6 billion in cash over four years just to keep the doors open
• For the Disney statement, where is their cash coming from and where are they spending the cash? (What are the major uses of cash outside of operations.)

the first statement is for Sears , the second one for Disney

Jan. 31, 2015 Feb. 01. 2014 Feb. 02, 2013 Jan. 28, 2012 12 Months Ended Jan. 29 Jan. 30, Jan. 31, 2011 2010 2009 2008 2007 2006 2005 (1,810) (1,116) (1,054) 150 297 99 826 1,492 858 1,106 (3,147) 27 (3,1201 (1,054) 836 835 720 237 1,798 1971 732 830 900 926 1,049 1,143 932 27 427 233 330 853 649 (64) 981 360 (51) (67) 174) (38) (82) (39) 581 63 (2071 (105) (450) (3) (946) (667) (169) (426) (468) (28) (593) (3901 (316) (209) (286) (277) (413) 455 (52) 38 8 9 6 (3) (64) (12) (15) (42) (92) 101 17191 1,091 (528) (110) (441) 446 (230) 63 (84) 66 93 (541) 263 (835) (140) (2401 58 208 (71) (53) 597 [43] 251 66 (206) 427 (117) (63) 1 (100) 40 (303) (533) 545 (134) (50) 2 67 102 (275) (20) (366) (264) (35) 7 4 140 130 90 188 272 101 65 48 (197) 1,507 (385) 1,003 (389) (173) 174) 207 (236) 992 (66) (5) (1,387) 44 (210) (1,109) 35 445 1,547 222 152 1,428 {62) 366 2,298 Consolidated Statements of Cash Flows (USD $) Jan. 28 Jan. 30, In Millions 2017 2016 CASH FLOWS FROM OPERATING ACTIVITIES Net income loss) (2,221) (1,128) Income) loss from discontinued operations, net of tax Income loss) from continuing operations Adjustments to reconcile net income to net cash provided by operating activities: Deferred tax valuation allowance 217 Tax benefit resulting from Other Comprehensive Income allocation 171) Depreciation and amortization 375 422 Impairment charges 274 Gain on sales of assets (247) 1743) Gain on sales of investments Pension and post-retirement plan contributions (334) (311) Mark-to-market adjustments of financial instruments 15 66 Pension and postretirement plan settlements Amortization of deferred gain on sale-leaseback (88) Amortization of debt issuance costs and accretion of debt discount 81 60 Settlement of Canadian dollar hedges Other gains Change in operating assets and liabilities (net of acquisitions and dispositions): Deferred income taxes (987) (519) Merchandise inventories 1,213 (229) Merchandise payables (526) (47) Income and other taxes 80 (95) Mark-to-market asset on Sears Canada U.S. dollar collar contracts Other operating assets (52 54 Other operating liabilities 118 (136) Net cash provided by operating activities (1,381) (2,167) CASH FLOWS FROM INVESTING ACTIVITIES Acquisitions of businesses, net of cash acquired Proceeds from sales of property and investments 386 2,730 Net decrease increase in investments and restricted cash Purchases of property and equipment (142) (211) De-consolidation of Sears Canada cash Proceeds from Sears Canada rights offering Cash settlement of swaps Net cash provided by used in investing activities-discontinued operations Net cash used in investing activities 244 2,519 CASH FLOWS FROM FINANCING ACTIVITIES Stock issued under executive compensation plans Proceeds from debt issuances 2,028 Repayments of long-term debt (66) (1,405) Increase (decrease) in short-term borrowings, primarily 90 days or less (797) 583 Sears Hometown and Outlet Stores, Inc. pre-separation funding Proceeds from the sale of Sears Hometown and Outlet Stores, Inc. Lands' End, Inc. pre-separation funding Separation of Lands' End, Inc. Debt issuance costs (51) (50) Purchase of Sears Canada shares Sears Canada dividends paid to minority shareholders Purchase of treasury stock Sale leaseback 71 508 Other Net cash used in financing activities 1,185 (364) Effect of exchange rate changes on cash and cash equivalents NET INCREASE DECREASE) IN CASH AND CASH EQUIVALENTS 48 (12) CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 238 250 CASH AND CASH EQUIVALENTS, END OF YEAR 286 238 100 (90) 1,068 (283) 141 424 72 (1,0201 2,201 35 562 995 (2) (329) 532 37 (378) (37] 86 (189) (497) 23 166 (361) 95 (30) (570) (432) (441) (508) (546) (230) (270) (207) 380 68 (10) (352) 43 (309) 327 664 191 (406) (172) {6371 (437) (6601 635 332 13 104 1,025 (80) {1,117) 994 (83) 238 5 (335) (81) 100 347 1,452 [486] 35 (611) 815 17 (262) 280 (335) (117) 3 (672) 68 (53) 524 (875) (831 176 (577) 1414) 515 (27) (14) (35) (2) (27) (3) (10) (50) 143) 171 (30) {603) (69) (394) (233) (735) {5901 (424) {678) (816) (2,926) 88 (183) 47 (75) (28) (53) 285 (3) (778) 1,028 250 902 (38) 419 609 1,028 (27) 1 (138) 747 609 {612) 1,359 747 (95) 57 (314) 1,689 1,375 (951) 132 516 1,173 1,689 (643) (161) (449) 1,622 1,173 (3,439) 112 12,217) 3,839 1,622 (1,252) (16) (500) 4,339 3,839 215 (1,952) 24 1,005 3,435 4,440 1,347 2,088 3,435 25 6 45 31 61 SUPPLEMENTAL INFORMATION: Capital lease obligation incurred Supplemental Cash Flow Data: Income taxes paid, net of refunds Cash interest paid Unpaid liability to acquire equipment and software Non-cash dividend in connection with Spin-Off transactions 23 275 18 45 252 27 119 230 25 21 206 41 40 199 30 (542) Sep. 30, 2017 12 Months Ended Oct. 01, 2016 Oct. 03, 2015 $ 9,366 2,782 (289) 334 (320) $ 9,790 2,527 (26) 1,214 (926) 799 (101) 393 $ 8,852 2,354 (91) (102) (814) 752 (922) 410 788 (1,075) 364 503 674 628 107 (5) (52) (368) 208 (393) 186 (443) 40 (598) 13,136 (211) 1 223 (49) 354 11,385 12,343 CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions OPERATING ACTIVITIES Net Income Depreciation and amortization Gain on Acquisitions and Sales of Investments Deferred income taxes Equity in the income of investees Cash distributions received from equity investees Net change in film and television costs and advances Equity-based compensation Other Operating Activities, Cash Flow Statement Changes in operating assets and liabilities: Receivables Inventories Other assets Accounts payable and other accrued liabilities Income taxes Cash provided by operations INVESTING ACTIVITIES Investments in parks, resorts and other property Acquisitions Other Cash used in investing activities FINANCING ACTIVITIES Commercial paper borrowings/(repayments), net Borrowings Reduction of borrowings Dividends Repurchases of common stock Proceeds from exercise of stock options Proceeds from Noncontrolling Interests Other Cash used in financing activities Impact of exchange rates on cash and cash equivalents Change in Cash, Cash Equivalents and Restricted Cash Cash and Cash Equivalents and Restricted Cash, Beginning of Year Total Cash and Cash Equivalents and Restricted Cash Supplemental disclosure of cash flow information: Interest paid Income taxes paid (3,623) (417) (4,773) (850) (135) (5,758) (4,265) 0 20 (4,245) (71) (4,111) (920) 6,065 (2,205) (2,313) (7,499) 259 1,247 4,820 (2,364) (2,445) (9,368) 276 17 (1,142) (8,959) 31 (696) 4,760 0 2,376 2,550 (2,221) (3,063) (6,095) 329 1,012 (689) (5,801) (302) 1,037 3,688 4,725 (607) (7,220) (123) 35 4,725 4,760 4,064 395 314 466 $ 3,801 $ 4,133 $ 4,396