Quite in-depth, but anyone who wants to look at how a real MNC handled a liquidity problem during the 2008/9 downturn, this tells a very full story. Very useful as an example in long answer questions: Source: http://www.nissan-global.com/EN/IR/INSIDE/INSIDE-SP/FCF/index.html In the latter half of FY 2008, Nissan, like other global companies, faced three challenges- the financial crisis, severe economic downturn and volatile exchange rates. However, Nissan continued investing and developing its brand, products and technologies, so that the company would be prepared for the post-crisis period and future. Nissan focused on free cash-flow management to address not only the current economic climate but also the major shifts occurring in the automotive industry, as a result of global environmental issues. Part 1: What is Free Cash Flow? The statement of cash flows is one of three financial statements, along with the balance sheet, the income statement. The cash flow statement rep...