Exhibit 1-1OC on page 68 shows the consolidated statements of cash flows for Carnival Corporation & PLC" for the years ended November 30, 2007, 2008, and 2009. Carnival Corporation is a global cruise company that operates several lines€”including Carnival Cruises, Princess Cruises, and Holland America€”offering cruises in Europe, North America, and Australia.
In Exhibit 1-1OC

Required:
a. Calculate the percentage change in net income and the change in cash provided by operating activities, from 2007 to 2009. Did the cash provided by operating activities change by more or less than the net income? Would this be a positive sign or a negative one?
b. When customers book a cruise, they usually pay for it several weeks or months before the cruise occurs. Because the cruise has not happened yet, Carnival does not record the payment as revenue. Instead, it recognizes its obligation as a liability called customer deposits. Based on the changes in customer deposits in 2008 and 2009, do you think Carnival's revenues are increasing or decreasing? Are there any other changes in the operating activities section that would support your conclusion?
c. How much did Carnival invest in property and equipment in 2009?
d. In general, what activities are used by Carnival to finance its investing activities?
e. Has Carnival issued any shares over the three year period? (Ignore the items related to treasury shares.)
f. Companies like to maintain or increase dividends paid to shareholders, and try to avoid decreasing dividends per share. Comment on Carnival's pattern of dividend payments over the three years, using the information in the statement of cash flows and your conclusion in part "e."

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Years Ended November 30, 2007 2,330 $ 2,408 1,101 2008 OPERATING ACTIVITIES Net income Adjustments to reconcile net income to net cash provided by operating activities $ 1,790 1,309 37 1,249 (37) (70) (18) Depreciation and amortization Share-based compensation Other Changes in operating assets and liabilities, excluding businesses acquired and sold (119) Receivables Inventories Prepaid expenses and other Accounts payable Accrued and other liabilities Customer deposits 10 (66) 74 29 (45) 109 163 430 4,069 (76) Net cash provided by operating activities ...w....3,342 3,391 INVESTING ACTIVITIES Additions to property and equipment. Purchases of short-term investments.. Sales of short-term investments Acquisition of business, net of cash acquired and sales of businesses Other, net (3,380 ,353 (3,312) (2,098) 2078 (339) (33) 91 Net cash used in investing activities 3.384) ,255 (3,746) FINANCING ACTIVITIES Principal repayments of revolver Proceeds from revolver Proceeds from issuance of other long-term debt Principal repayments of other long-term debt. (Repayments of) proceeds from short-term borrowings, net Dividends paid Purchases of treasury stock Sales of treasury stock Proceeds from settlement of foreign currency swaps Other, net (1,749) 1,166 (3.314) 3,186 2,243 (1211) 138 1.261) (98) 15 (135) 1,086 2,654 (1,656) (1,281) (990) (326) (1,273) (288) (314) (188) 196 113 (55) (13) Net cash used in financing activities 61 (220) 1,163 S 943 Effect of exchange rate changes on cash and cash equivalents. 23 (112) 650 Net decrease in cash and cash equivalents (293) Cash and cash equivalents at beginning of year... Cash and cash equivalents at end of year. $ 538 S 650