Statement of Cash flow

        Below is the statement of cash flows for ABC Company.  The changes in sales from the previous years are included at the bottom of the statement of cash flows.  Year Ended Year 10 Year 9 Year 8  OPERATING ACTIVITIES Net Income $82.1 ($171.2) $37.9 Depreciation and amortization $29.0 $35.6 $33.2 Restructuring Charges $212.8 Deferred income taxes $43.4 ($58.4) $18.8 Other Additions  $10.3 $34.7 $8.1 Other subtractions ($63.5) ($20.3) ($16.3) Unrealized (gains) and losses on investments ($7.5) $0.8 ($0.8)    (Increase)/Decrease in accounts receivables ($63.5) ($10.4) ($3.4)    (Increase)/Decrease in inventories ($75.6) ($8.7) ($3.7)    (Increase)/Decrease in prepayments ($6.8) $2.0 ($6.6)    Increase/Decrease in accounts payables ($1.2) $11.0 $6.9    Increase/Decrease in other current liabilities $39.6 ($16.4) ($13.8) Net Cash Provided by (Used in) Operating Activities ($13.7) $11.4 $60.4 INVESTING ACTIVITIES Acquisition and investment in fixed assets ($43.7) ($56.5) ($105.1) Sale of business $68.3 $49.0 Acquisition of businesses ($0.7) ($24.8) Other investing activities $0.3 Net Cash Provided by (Used IN) Investing Activities $24.5 ($57.2) ($80.6) FINANCING ACTIVITES Issuances (Payments) of short-term debt $3.8 $22.5 $30.0 Issuances of long-term debt $8.6 Issuances of common stock $20.0 $6.9 $7.4 Payments of long-term debt ($9.2) ($1.4) ($4.1) Acquisitions of common stock ($9.8) Dividends ($2.6) ($2.5) ($2.5) Other financing transactions $0.4 ($0.3) ($0.2) Net Cash Provided by (Used IN) Financing Activities $12.4 $33.9 $20.9 Net Increase (Decrease) in Cash During the Year $23.2 ($11.9) $0.8 Change in sales from previous year 12.3% -5.8% 2.2% Required:a) Which stage of the life cycle is this company in? (introduction, growth, Maturity or Decline?)   Why do you think so? b) Find 3 items that may indicate quality of financial statement problems.  Why do you think these items indicate potential problems?