Interpreting IFRS-based statements of cash flow across time
The statement of cash flow for Nestlé Group, a Swiss-based food conglomerate that publishes IFRS-based financial statements, contained the following numbers (in million Swiss francs—CHF).
|
2008 |
2007 |
|
|
Profit |
19,051 |
11,382 |
|
Operating cash flow |
10,763 |
13,439 |
|
Cash flow from investing activities |
4,699 |
15,753 |
|
Cash flow from financing activities |
16,884 |
3,397 |
a. Explain how profit could be below operating cash flow in one year and above it the next.
b. Analyze Nestlé”s cash management activities in 2007 and contrast them with 2008.