Chapter 13, Problem 13.44ACT

1.

To determine

To provide: The answer to the following questions using the statement of cash flows of the company S:

a. Is Company S generating cash from its operations?

b. What investing activities the company has been involved in over the past three years. Are investing activities an overall source or use of funds for the company?

c. What financing activities has the company been undertaking in the past three years? Has it been paying dividends to its common stockholders?

d. How will the closure of the Kmart and S stores impact the 2016 statement of cash flows?

2.

To determine

To provide: The answer to the following questions using the statement of cash flows of the company W:

a. Is Company W generating cash from its operations?

b. What investing activities the company has been involved in over the past three years. Are investing activities an overall source or use of funds for the company?

c. What financing activities has the company been undertaking in the past three years? Has it been paying dividends to its common stockholders?

d. How will the closure of the W stores impact the 2016 statement of cash flows?

3.

To determine

To identify: The Company which is healthier by using the statement of cash flows.

4.

To determine

The reason for using fiscal year-ends around January 31 rather than using a calendar year-end of December 31 by the companies S and W.