Access the 2011 financial statements for BCE Inc. by going to investor relations section of the company’s website. Answer the same questions as in Problem1. Round percentages to one decimal point and other ratios to two decimal points. For each question, indicate where in the financial statements you found the answer, and/or provide a brief explanation. (Some questions may not be applicable.)
In Problem 1
(a) Does the company employ the direct or indirect method of accounting for operating cash flows?
(b) What was the biggest cash outflow during the year?
(c) Describe how the cash paid for business acquisitions was reported in the statement of cash flows.
(d) State the company's accounting policy for reporting share transactions between the company and non-controlling shareholders that do not result in a loss of control of a subsidiary.
(e) Were there any share transactions between the company and non- controlling shareholders in 2010 and/or 2011 that did not result in gaining or losing control? If so, describe how the transactions were reported and the impact, if any, on consolidated net income.
(f) Assume that the company sold a subsidiary during the year and realized a substantial gain. If the company had reported the income from dis continued operations rather than in income from continuing operations, what impact would this have had on the company's share price? Briefly explain.