Use the consolidated cash flow statement for H&M AB in Appendix A at the end of the book to answer the following questions.
a. In total, how much did H&M's cash and cash equivalents change during 2008? Was this an increase or a decrease? How much did H&M's cash and cash equivalents change during 2009? Was this an increase or a decrease?
b. Did H&M increase or decrease the amount of inventory it holds (stock-in-trade) in 2009? By how much? Where did you find this information?
c. Did H&M repay any outstanding debt during 2009?
d. Comment on H&M's sources and uses of cash during 2008 and 2009. Which types of cash flow (operating, investing, or financing) provided the main sources of cash? How did H&M spend its cash?
e. If you were a user of H&M's financial statements—a banker or an investor—how would you interpret the pattern of cash flows you identified in part "d"? Do you think H&M is a risky company? Do you think it is growing rapidly?