Purpose: To help you understand and compare the performance of two companies in the same industry.
Find the Bombardier Annual Report, Year Ended January 31, 2011, located in MyAccountingLab and go to the Consolidated Cash Flows. Now access The Boeing Company's 2010 Annual Report. To do this from the internet, go to their webpage for the Investor Relations at www.boeing.com/companyoffices/financial/quarterly.htm and under Annual Report, go to the 2010 Annual Report.
Requirement
Which method (direct or indirect) does each of these companies use to prepare its cash flow statement? How can you tell? Which activities provided cash for each of the companies? Which activities used cash for each of these companies? What conclusions can you draw from these results?