In 2017 and 2016, Sears Holding Corporation reported net losses and negative cash flows from operating activities.

Question:

In 2017 and 2016, 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 3, 2018 (2017), complete the requirements shown as follows. The Form 10-K can be found on the company’s website. It can also be obtained using the EDGAR system following the instructions in Appendix A.


Required

a. Determine Sears’s net incomes and cash flow from operating activities for 2017 and 2016.

b. How was Sears able to pay its bills given that it has such large, negative net cash flows from operating activities in 2017 and 2016? Provide a separate answer for each year.

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Introductory Financial Accounting For Business

ISBN: 9781260575309

2nd Edition

Authors: Thomas Edmonds, Christopher Edmonds, Mark Edmonds, Jennifer Edmonds, Philip Olds

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