Discuss cash flow implications of these inventory adjustment

Reference no: EM131408434

The 2008 statement of cash flows for JCPenney reports (dollars in millions) net cash from operating activities of $1,155 (2008), $1,249 (2007), and $1,258 (2006). Included on the statement of cash flows (indirect method) in the computation of net cash from operating activities are adjustments for inventory of $382 (2008), -$241 (2007), and -$190 (2006).

REQUIRED:

Explain the nature of these adjustments and what they tell us about JCPenney's inventory balances in 2008, 2007, and 2006.

Discuss the cash flow implications of these inventory adjustments.

Reference no: EM131408434

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