Question: Identify the quality red flags for 2009 in the following portion of a cash flow statement. Revenues for2009 declined from $456million in 2008 to $401million.

Identify the quality red flags for 2009 in the following portion of a cash flow statement. Revenues for2009 declined from $456million in 2008 to $401million.

n Millions Net income Depreciation Change in accounts receivable, net Change in accrued expenses Change in deferred revenue Change in estimate of restructuring charge Cash flow from operating activities Cash in investing activities: 2009 2008 $36.5 46.0 (33.3 12.4 (22.5) (22.0) 17.1 $28.3 63.0 12.2 (5.2) 12.3 110.6 Capital expenditure 61.0 1S8.0

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