Access the financial statements of Bombardier Inc. for the years ended December 31, 2017 and 2016, from the company's website or SEDAR (www.sedar.com). 

Instructions 

Changes in non-cash working capital items can have a significant impact on operating cash flows. Using the financial statements, answer the following questions.

a. What does Bombardier do? When are revenue and related costs recognized? Comment on the timing of revenue and expenses, and cash receipts and payments related to operating activities. 

b. What was Bombardier's net income (loss) for 2015, 2016, and 2017? What were the operating cash flow amounts for the same periods? Calculate the difference between net income and operating cash flows for each year. In which years was the operating cash flow higher or lower than net earnings? Calculate the year-over-year percentage changes in net income (loss). Calculate the year-over-year percentage changes in operating cash flows. 

c. Because impairment charges do not represent cash outflows from operating activities, repeat the analysis performed in part (b) excluding impairment charges from the losses of 2016 and 2017. What were the main sources of impairment recorded in 2016 and 2017? Comment on these differences in dollar amounts and year-over-year percentage changes. 

d. Besides the impairment losses, what is causing these differences in net income (loss) and operating cash flows to occur? Highlight significant differences and explain why these arise. 

e. Comment on the ability to predict cash flows for this company. Which approach in preparing operating cash flows (direct or indirect) would be most useful to potential investors?