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Staples Inc is the world s leading office products company

Locate
Staples Inc is the world s leading office products company Locate

Staples, Inc., is the world's leading office products company. Locate the statement of cash
flows of Staples for the fiscal year ended January 30, 2016, on the Internet.
Required:
1. In the three years reported, what was Staples' primary investing activity? How was this
activity financed? Be specific.
2. During the most recent fiscal year, Staples purchased certificates of deposit. How were these
purchases reported in the statement of cash flows? This is not an investing activity.
3. How are issuances of debt securities and issuances of equity securities classified in a
statement of cash flows?
4. How are payments to investors in debt securities (interest) and payments to investors in
equity securities (dividends) classified in a statement of cash flows? Is this a conceptual
inconsistency? Explain.
5. Staples' statement of cash flows reports expenditures for acquisition of businesses. It also
reports additions to long-term debt. Suppose the businesses had been acquired not with cash,
but by exchange for debt securities. Would such a transaction be reported? Explain.

Staples Inc is the world s leading office products company Locate


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