Part II: Analyzing Statement of Cash Flows of Caterpillar Inc.
Please obtain the Statement of Cash Flows of Caterpillar Inc. for the year ending December 31, 2022. Based on the statement, answer the following questions for the most recent year.
1) What are the total Cash Flows from Operations (CFO), from Financing (CFF) and from Investments (CFI) for the year? What do the cash flow patterns tell us about the stage of lifecycle the firm is in?
2) In obtaining the CFO from NI, what is the major non-cash charge added back? What are the other non-cash charges added back?
3) Based on the CFO calculations, did the receivables increase or decrease during the year and by how much? How does this change compare with the prior year?
4) How does the Receivables change in CFO calculations compare with the changes that we can calculate from the Balance Sheet? Which of the two is more likely to reflect changes that correspond to operational changes and why?
5) Is the company building up inventories?
6) What is the biggest investment for the company? How is the Capex spend relative to the other investments?
7) What are the major sources of changes to the CFI for the year?