Question: Interpreting a statement of cash flows based on the direct method for presenting cash flow from operations Refer to information about CVS Caremark Corporation in

Interpreting a statement of cash flows based on the direct method for presenting cash flow from operations Refer to information about CVS Caremark Corporation in the preceding problem. Consider the 52 weeks ending December 30, 2006, as the year 2006.

a. What was the change in accounts receivable during 2006?

b. Inventories increased by $624.1 during 2006. What was the change in accounts pay able for inventories during 2006?

c. By how much did the amount paid for interest during 2006 differ from interest expense? Give the amount and indicate whether the amount paid exceeded, or was less than, expense.

d. Note that cash flow from operations increased by about 10% between 2005 and 2006 but nearly doubled between 2006 and 2007. What cause(s) can u suggest for this dramatic change?


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