Question: [Income statement and cash How analysis -Westvaco]
a. Prepan: a direct method cash flow statement for 1999. (Note H reports the changes in operating assets and liabilities, reconciles capital expenditures on a cash basis, and discloses other cash payments )
b. Discuss the insights provided by the direct method each flow statement.
c. Westvaco made acquisttions in fiscal 2000 for more than S1.3 billion. Discuss how Westvaco's cash flows for 1997-1999 positioned the company to make major acquisitions.