Each chapter in the textbook contains a continuation of this problem. The objective is to learn how to do a comprehensive financial statement analysis in steps as the content of each chapter is learned. Using the 2007 Eastman Kodak Annual Report and Form 10-K, which can be found at www.prenhall .com/fraser complete the following requirements:

(a) Open the financial statement analysis template that you saved from the Chapter 1 Eastman Kodak problem and input the data from the Eastman Kodak cash flow statement. All cash flows from discontinued operations should be combined and input on the line labeled as such toward the bottom of the statement. In 2005, add the loss from the cumulative effect of the accounting change to the loss from continuing operations and input in the first line "Income (loss) from continuing operations." When you have finished inputting the data, review the cash flow statement to make sure there are no red blocks indicating that your numbers do not match the cover sheet information you input from the Chapter 1 problem. Make any necessary corrections before printing out both your input and the common-size cash flow statement that the template automatically creates for you.

(b) Analyze the cash flow statement of Eastman Kodak. Write a summary that includes important points that an analyst would use in assessing the ability of Eastman Kodak to generate cash flows and the appropriateness of the use of cash flows.