Refer to the consolidated statements of cash flows of the Campbell Soup Company
ID: 2472404 • Letter: R
Question
Refer to the consolidated statements of cash flows of the Campbell Soup Company annual report in the appendix.
Required: a. Identify the two most significant sources of cash from operating activities during 2011. How much of a cash source amount do these items represent?
b.What was the firm’s most significant investing activity during 2011, and how much cash did this activity use or generate?
c.
Identify the two most significant financing activities during 2011. What was the net effect on cash of these items?
c.
Identify the two most significant financing activities during 2011. What was the net effect on cash of these items?
Explanation / Answer
Answer a
The two significant activities in operating Cash Flow are Restructuring Charges of 63millions and Pension Funds Contribution of 144millions. In both sources there is an outflow of cash.
Answer b
The two significant activities in Investing Cash Flow are sales and purchase of plant assets in 2011. In 2011, Plants of 272millions are purchased and Plants of 9millions are sold.
Answer c
The two significant activities in Financing Cash Flow are outflow (repayment of note payable) and inflow (long term borrowing). Cash outflow is of 700million and inflow of 500million. So, net effect is of 200million outflow.