The statement of cash flows for Lands' End is reproduced here: Required: a. Lands' End recently implemented

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The statement of cash flows for Lands' End is reproduced here:


The statement of cash flows for Lands' End is reproduced


Required:
a. Lands' End recently implemented a strategy of filling nearly all orders when the order is placed. In what year do you believe the company implemented this strategy and how is the strategy reflected in the information contained in the statement of cash flows?
b. Explain how the following items reconcile net income to net cash flows from operating activities:
(1) Depreciation
(2) Receivables
(3) Inventory
(4) Reserve for returns
c. Calculate free cash flows for each year shown.
d. How does Lands' End use its free cash flow? Do you think its use of free cash flows reflects good financial strategy?
Lands' End recently implemented a strategy of filling nearly all orders when the order is placed. In what year doyou believe the company implemented this strategy and how is the strategy reflected in the information containedin the statement of cashflows?

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Financial Statement Analysis

ISBN: 978-0078110962

11th edition

Authors: K. R. Subramanyam, John Wild

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