The following statements of cash flows are from First Solar, Inc.€™s 2008 annual report:

Answer the following questions:
1. What was First Solar€™s main source of cash for the most recent fiscal year?
2. Is First Solar expanding its business? What evidence on the statement of cash flows supports your opinion?
3. Did the company issue any new stock during the most recent fiscal year? Any new debt?
4. When a firm uses the direct method, it must also provide a reconciliation of net income to net cash from operating activities. What does this mean? Do you think this requirement discourages the use of the directmethod?

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FIRST SOLAR, INC., AND SUBSIDIARIES Consolidated Statements of Cash Flows Year Ended December 27 December 29, December 30, 2007 in thousands) Cash flows from operating activities: 2000 Cash received from customers Cash paid to suppliers and associates Interest received Interest paid, net of amounts capitalized Income taxes paid, net of refunds. Excess tax benefit from share-based $1,203,822 515,994 110,196 (723,123) (276,525) (111,945) 2,640 (712) 19,138 (4,629) (1,975) 19,965 (2,294) (19,002) compensation arrangements Other (28,661) (30,196) 1505) 1,991)(710) (45) 05,951676) (163,150) Net cash provided by (used in) operating activities Cash flows from investing activities: Purchases of property, plant and equipment .(459,271) (242,371) Purchase of marketable securities Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Increase in restricted investments.i. ..-.. Investment in related party... . Acquisitions, net of cash acquired. .. Other investments in long-term assets . . . . . . (334,818 (1,081,154) 787,783 107,450 418,762 (15,564) (25,000) (G,008) (G,804) (6,500) (40) (308,441) 647250) (169,994) 一 Net cash used in investing activities . . Cash flows from financing activities 365,969 Proceeds from issuance of common stock Proceeds from notes payable to a related party Repayment of notes payable to a related party Repayment of long-term debt Other equity contributions Proceeds from stock options exercised Proceeds from issuance of debt, 302,650 (64,700) (41,691 (34,757) 10,173 49,368 30,196 30,000 100 16,036 138,887 28,661 004763000 net of issuance costs Excess tax benefit from s 130,833 compensation arrangements: Proceeds from economic development funding Other financing activities 45 16,766 35,661 9,475 430,421 7,050 308,092 Net cash provided by financing activities Effect of exchange rate changes on cash and cash 177.549 451,550 equivalents Net increase in cash and cash equivalents.. -.. . . . Cash and cash equivalents, beginning of year 404264 Cash and cash equivalents, end of year..... . . . . . . .716.218 391 96,172291,371 16,721 311,954 404,264