In 2013 and 2012 Sears Holding Corporation reported net losses and negative cash flows from operating activities. Using the company’s Form 10-K for the fiscal year ended February 1, 2014 (2013), complete the requirements below. The Form 10-K can be found on the company’s website, where it is called the Annual Report. It can also be obtained using the EDGAR system following the instructions in Appendix A.
Required
a. Determine Sears’ net incomes and cash flow from operating activities for 2012 and 2013.
b. How was Sears able to pay its bills given that it has such large, negative net cash flows from operating activities in 2012 and 2013? Provide a separate answer for each year.