The following are the comparative statements of cash flows for Yellow Spruce Incorporated:
YELLOW SPRUCE INCORPORATED
Statements of Cash Flows
(in millions)

Required:
a. Discuss the company's ability to meet its needs for cash over these three years, and comment on the continuing nature of the major items that have appeared over this time period.
b. Comment on the changes in Yellow Spruce's accounts receivable, accounts payable, and inventory levels over these three years.
c. How did Yellow Spruce finance its repayment of long-term debt and its acquisition of non-current assets in 2011?

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Operating activities Net earnings Add back 2011 2010 2009 7 86 98 82 75 65 Depreciation Loss (gain) on sale of investments Effect of changes in working capital items 2( Receivables (38) 30 (39) 21) 17) (21) 4 13(9 27 (12) 35 113 175- Inventories Prepaid expenses Accounts pavable Net cash inflow from operations Investing activities Acquisition of non-current assets Acquisition of investments Proceeds from sale of non-current assets Net cash outflow for investing activities (154) 6 152) 23) (51) (72) 161) 201) 197 Financing activities Issuance of long-term debt Repayment of long-term debt Issuance of shares Repurchase of shares Dividends paid Net cush flow from financing activities 13 156 332 131) (72) (93) (38 (84) 6) 14) (15 78 32 140 30 Overall inerease (decrease) in cash Cash position at beginning of year Cash position at end of year 100 94 33 130 100 94