1. Identify the impact on operating cash flows (increase or decrease) for changes in inventory levels (increase or decrease) for both companies for each of the three most recent years. Use Excel for your analysis. See Chapter 12-Reporting Cash Flows for review if necessary.
2. What impact would a JIT inventory system have on each company's operating income? (Increase/Decrease/No Change and by how much? Explain!) Link this answer to your response in question 1 above.
3. Would the move to a JIT system have a one-time or recurring impact on operating cash flow? (This is a theoretical question, but use one or both of your companies as an example in your answer. Explain!)
Linear Technology Company
https://cds.linear.com/docs/en/investor/Linear-Technology-Annual-Report-2016.pdf
https://cds.linear.com/docs/en/investor/LinearTechnology-2016-AnnualReport-Final-100dpi_%281%29.pdf
https://cds.linear.com/docs/en/investor/2014_Annual_Report_final.pdf
https://www.dropbox.com/s/kfjxcscu7loam3o/Attachments.rar?dl=0