Q1. Complete the trend analysis for 2011. Divide each amount by the amount for the base year. Record the resulting trend index in the shaded area. Use 2009 as the base year.
Q2. Net cash from operating activities (NCOA): The annual rate of growth in NCOA can be compared among companies.
The two-year average rate of growth of NCOA from 2009 to 2011 is (low / moderate / _______).
(141 - 100 = 41 / 2 years ~ 20% > 15%)
Q3. Net cash from investing activities (NCIA): In 2011 the trend index for NCOA is _______, indicating NCOA (_______/ decreased) by _______ since the base year. Whereas the 2011 trend index for NCIA is _______, indicating NCIA (increased / _______) by _______ since the base year.
Q4. Net cash from financing activities (NCFA): Since the base year, dividends grew by _______.
Q5. Trend analysis (_______/ lacks) meaning. However, since amounts with opposite signs cannot be accurately compared and division by zero is not applicable, sometimes a trend analysis of the statement of cash flows is less meaningful than for the other financial statements.
Q6. Refer to the information above. The strongest cash position for LUV was in (_______ / _______ / 2009). Why? Support your response with at least two valid observations.