In this case, you are asked to prepare a Statement of Cash Flows for Lowe$$s Companies for the fiscal year ended February $1,2019($fiscal year $2018).($For the purposes of this case, do NOT go to Lowe$$s website and pull down the actual Statement of Cash Flows that they prepared, and then try to obtain the numbers they reported. We will explain in class why your Statement of Cash Flows may not look exactly like Lowe$$s reported Statement of Cash Flows.$)$ In preparing your statement of cash flows, please refer to the enclosed Consolidated Balance Sheets, Consolidated Statement of Earnings and Footnote Excerpt from Lowe$$s $2018$ Annual Report. The following additional information has been provided by Lowe$$s comptroller: a$.$ b$.$ c$.$ d$.$ Lowe$$s acquired property worth $$1,174$ million during fiscal year $2018.$ Lowe$$s paid cash for this acquisition. Lowe$$s also sold some property in fiscal year $2018$ at a loss of $$630$ million. The loss on the sale of the equipment is included in Lowe$$s Income Statement in $$Selling$,$ General and Administrative.$$ Lowe$$s bought, but did not sell, any short$-$term investments. Lowe$$s sold, but did not buy, any long$-$term investments. Net income includes a non$-$cash loss on impairment of Goodwill of $$1,004,$ which should be reflected in the adjustments to net income from operating activities.

Assignment Questions:

$1.$ Prepare a Statement of Cash Flows for Lowe$$s for fiscal year $2018$ using the indirect method.

$2.$ What are the main sources and uses of cash revealed by the analysis?

$3.$ For this question, assume that Lowe$$s paid for the acquisition of property described in $($a$)$ above partly by issuing equity of $$223$ million and the remaining $$951$ in cash. How, if at all, would this change your Statement of Cash Flows for fiscal year $2018?$

$4.$ Lowe$$s CEO is thinking about expanding outside of the United States in Europe and Asia. The proposed major overseas expansion plan would involve capital expenditures of about $$8$ billion in fiscal $2019.$ Do you think Lowe$$s can achieve its expansion plans? If yes, how? If not, why not?