Staples, Inc

Staples, Inc., is the world‘s leading office products company. Locate the
statement of cash flows of Staples for the fiscal year ended January 29.
2011 on the Internet.

Required:

1. In the three years reported, what were Staples’ primary investing
activities? How were these activities 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? (Note: 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.