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Billabong net income and SCF

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See attached annual reports containing financial statements for the year 2006 pertaining to:

Billabong International Limited (http://www.billabongcorporate.com/documents/FinancialReport30June200621AugFINALWebsiteVersion.pdf)
a. The Balance Sheet
b. The Income Statement
c. The Statement of Cash Flows

Based on the general organization of Billabong, I need an opinion on which of the above statements is more useful for the company: Net income or Cash from Operating Activities.

Also, please make a prediction about the company based on the additional information found in the annual report from the attached statements.

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Solution Summary

The solution details which of Billabing's financials is more useful-net income or cash from operating activities and why. Also, the solution makes a prediction regarding the future performance of the firm.

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Billabong is in the business of wholesaling and retailing surf, skate, and snow apparel and accessories with fairly streamlined operations. Looking at the statement of cash flows, Billabong realized a considerable outflow of cash totaling $145,179,000 in their investing segment (primarily because of the purchase of a subsidiary and the acquirement of plant, property, and equipment). These are not outside investing activities. In other words, the company is only attempting to ...

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