In this chapter, you learned about income tax expense and cash dividends. You should be able to use what you have learned to determine the amount of cash used for payment of income tax expense and cash dividends paid during the year. Let’s take a look at Kraft Foods Inc. The company’s 2010 Annual Report (or 10-K) is located at www.kraftfoodscompany.com/Investor/sec-filings-kraftfoodscompany.com/Investor/sec-filings-annual-report/annual_reports.htm.kraftfoodscompany.com/Investor/sec-filings-annual-report/annual_reports.htm. Click View the most recent edition of our annual report.
1. For the year ended 2010, how much was reported in net revenues on Kraft Foods Inc.’s consolidated statement of earnings?
2. What was the company’s current provision for income taxes for 2010?
3. How much did the company pay in cash for income taxes during 2010?
4. What is one reason a company’s income tax expense and the amount it paid in cash for income taxes might differ? From what you have learned in this chapter, you should be able to come up with one explanation.
5. How much cash, if any, did Kraft Foods Inc. pay in dividends during 2010?