Refer to the Foot Locker, Inc., Consolidated Financial Statements in Appendix B at the end of this book.

1. Focus on cash and cash equivalents. Why did cash change during 2007? The statement of cash flows holds the answer to this question. Analyze the seven largest individual items on the statement of cash flows (not the summary subtotals such as net cash provided by operating activities). For each of the seven individual items, state how Foot Locker, Inc.’s action affected cash. Show amounts in millions and round to the nearest $1 million. (Challenge)

2. Foot Locker, Inc.’s Report of Management describes the company’s internal controls. Show how the management report corresponds to three of the five objectives of internal control included in this chapter. (Challenge)