The TJX Companies, Inc., parent company of Winners, HomeSense, and StyleSense, among other companies, flows and profit. reported cash provided by operating activities of U.S. $1,976 million for the year ended January 30, 2011 (fiscal 2010), a (SO 1, 2, 5) decrease of U.S. $296 million over the U.S. $2,272 million reported for fiscal 2009. The company also reported profit of U.S. $1,343 million in fiscal 2010, an increase of U.S. $129 million over profit of U.S. $1,214 million reported for fiscal 2009. Its cash and cash equivalents increased by U.S. $127 million during fiscal 2010, from U.S. $1,615 million to U.S. $1,742 million. TJX includes its highly liquid investments, with a maturity date of three months or less, as cash equivalents.
Instructions
(a) How is it possible that TJX can generate U.S. $1,976 million of cash provided by operating activities in fiscal 2010 but earn only U.S. $1,343 million of profit in the same year?
(b) Explain how TJX decreased its cash provided by operating activities by U.S. $296 million in fiscal 2010 while profit increased by U.S. $129 million over the same period.
(c) Explain how TJX can have a decrease of U.S. $296 million in its cash provided by operating activities in fiscal 2010 while reporting an increase of U.S. $127 million in the ending balance of its cash and cash equivalents over the same period.