Refer to the annual report of CVS Corporation and the financial statements of Southwest Airline in the

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Refer to the annual report of CVS Corporation and the financial statements of Southwest Airline in the Supplement to Chap 5. Calculate for two years each company’s cash flow yield, cash flows to sales, cash flows to assets and free, cash flows. At the end of 2006, Southwest’s total assets were $13,460 million and CVS’s total assets were $20,574.1 million.

Discuss and compare the trends of the cash-generating ability of CVS and Southwest. Comment on each company’s change in cash and cash equivalents over the two-year period.


Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Principles of Accounting

ISBN: 978-1439037744

11th Edition

Authors: Needles, Powers, crosson

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