Net cash provided by operating activities and net income

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Reference no: EM131318105

SPECIALTY RETAILER

With this case, we review the cash flow of several specialty retail stores. The companies reviewed and the year-end dates are as follows:

1. Abercrombie & Fitch Co.
(52-week fiscal year ended January 29, 2011; 52-week fiscal year ended January 30, 2010; 52-week fiscal year ended January 31, 2009) "Abercrombie & Fitch Co ... is a specialty retailer that operates stores and direct-toconsumer operations." 10-K

2. Limited Brands, Inc.
(52-week fiscal year ended January 29, 2011; 52-week fiscal year ended January 30, 2010; 52-week fiscal year ended January 31, 2009) "We operate in the highly competitive specialty retail business." 10-K

3. Gap, Inc.
(52-week fiscal year ended January 29, 2011; 52-week fiscal year ended January 30, 2010; 52-week fiscal year ended January 31, 2009) "We are a global specialty retailer offering apparel, accessories, and personal care products." 10-K

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Required
a. Comment on the difference between net cash provided by operating activities and net income. Speculate on which number is likely to be the better indicator of long-term profitability.

b. Comment on the data reviewed for each item

c. Do any of these firms appear to have a cash flow problem? Comment.

Reference no: EM131318105

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