Let's look at Dick's Sporting Goods (Dick's) some more. Think about Dick's. How much cash does Dick's have? What are the sources and uses of Dick's cash? Return to Dick's Annual Report and look at Dick's financial statements (see the Continuing Financial Statement Analysis Problem in Chapter 2 for instructions on how to access the Annual Report).

Now answer the following questions:

1. Look at Dick's balance sheet, income statement, and statement of cash flows. Find net income on the income statement and statement of cash flows for the year ending January 31, 2015. Find ending balance of cash and cash equivalents on the balance sheet as of January 31, 2015 and February 1, 2014. How does the statement of cash flows for the year ending January 31, 2015 tie these amounts together? Show how Dick's statement of cash flow ties Dick's income statement and balance sheet statement together.

2. Look over Dick's statement of cash flows for the years ending January 31, 2015 and February 1, 2014. What is Dick's net cash flow from operations, investing, and financing for 2014 and 2013? How have these cash flows changed over the last two years?

3. What is Dick's cash conversion cycle for the year ending January 31, 2015? What does this cash conversion cycle tell you? Assume sales are all on account.