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Notes on Pearson's Cash Flow Statement

Please help make notes on what happened to Pearson in 2009 from looking at their cash flow statement and income statement. Only 1 slide of A4 will do. Please can you make just short notes for me? Explaining if anything happened in 2009 from looking at their figures. Here is the link to their financial information:

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Please refer to the attached files for the response.

PERFORMANCE (2008- 2009)

This report provides some notes on the performance of Pearson Education, Inc. during the two-year period (2008 - 2009) using the company's income statement and statement of cash flows.

What the income statement indicates?

According to Keown et al. ( 2002), income statement, otherwise known as profit and loss statement, measures the amount of profits generated by a firm over a given time period.

Between the year 2008 and 2009, the following were observed:
1. Sales increased by 16.89%. This indicates an increase in the money derived by the company from selling its products and services. It may indicate further that either the volume of products sold increase or the company increased its prices.
2. Cost of goods sold correspondingly increased by 16.79%, resulting to an increase in gross profit by 16.98%. The company spent more on the cost of ...

Solution Summary

The notes on Pearson's cash flow statements are examined in the solution.