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In: Accounting

The comparative cash flow statements from Sears and Wal-Mart are presented above. Amounts presented are in...

The comparative cash flow statements from Sears and Wal-Mart are presented above. Amounts presented are in millions. Review both statements considering what you've learned in this chapter about the cash flow statement.

Answer the following questions:

  1. When analyzing a company's cash flow statement, which section of the statement (operating, investing or financing) do you believe is the best predictor of a company's future profitability? Why?
  2. Which company do you believe is healthier based on the cash flow statements presented? Provide at least two specific examples from the statements.

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