Analyzing the statement of cash flows KB Home is one of the largest homebuilders in the United States. The cash flows provided by investing activities section of the company”s statement of cash flows for the years 2006-2008 follow (in $000).
|
Sale of discontinued operations, net of cash divested |
2008 |
2007 |
2006 |
|
$739,764 |
— |
||
|
Sale of investment in unconsolidated joint venture |
57,767 |
||
|
Change in restricted cash |
$(115,404) |
— |
|
|
Investments in unconsolidated joint ventures |
(59,625) |
(85,188) |
(179,184) |
|
Sales (purchases) of property and equipment, net |
7,073 |
685 |
(17,638) |
|
Other, net |
772 |
||
|
Net cash provided (used) by investing |
(167,956) |
$655,261 |
$(138,283) |
|
Net cash used by investing activities—discontinued operations |
(12,112) |
(4,477) |
|
|
Net cash provided (used) by investing activities |
$(167,956) |
$643,149 |
$(142,760) |
Required
- How have cash flows provided by investing activities changed over the three-year period?
- If any of these changes continue in the coming years, what concerns would you have about KB Home”s future?