Question

Please use Excel to analyze the statement of cash flows for the table below.

1) What is the correlation between net income and operating cash flow?

2) Explain the trends of cash flow from the table below.

3) What is the free cash flow from the table below?

Cash Flow
All numbers in thousands
Period Ending	1/31/2018	1/31/2017	1/31/2016	1/31/2015
Net Income	9,862,000	13,643,000	14,694,000	16,363,000
Operating Activities, Cash Flows Provided By or Used In
Depreciation	10,529,000	10,080,000	9,454,000	9,173,000
Adjustments To Net Income	4,703,000	1,617,000	1,124,000	733,000
Changes In Accounts Receivables	-1,074,000	-402,000	-19,000	-569,000
Changes In Liabilities	4,086,000	3,942,000	2,008,000	2,678,000
Changes In Inventories	-140,000	1,021,000	-703,000	-1,229,000
Changes In Other Operating Activities	928,000	1,280,000	1,466,000	1,249,000
Total Cash Flow From Operating Activities	28,337,000	31,673,000	27,552,000	28,564,000
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures	-10,051,000	-10,619,000	-11,477,000	-12,174,000
Investments	-	-1,901,000	-1,901,000	-1,901,000
Other Cash flows from Investing Activities	-58,000	-122,000	-79,000	479,000
Total Cash Flows From Investing Activities	-9,060,000	-13,987,000	-10,675,000	-11,125,000
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid	-6,124,000	-6,216,000	-6,294,000	-6,185,000
Sale Purchase of Stock	-	-	-	-
Net Borrowings	-1,437,000	-3,591,000	-3,158,000	-5,018,000
Other Cash Flows from Financing Activities	-4,018,000	-967,000	-2,721,000	-2,853,000
Total Cash Flows From Financing Activities	-19,875,000	-19,072,000	-16,285,000	-15,071,000
Effect Of Exchange Rate Changes	487,000	-452,000	-1,022,000	-514,000
Change In Cash and Cash Equivalents	-111,000	-1,838,000	-430,000	1,854,000

Answer 1