McDonalds Corporation is a well-known provider of food services around the world. McDonalds statements of cash flows

McDonald’s Corporation is a well-known provider of food services around the world. McDonald’s statements of cash flows for 2011 and 2010 are reproduced with a few slight modifications as Exhibit. Use that statement to answer the following questions:

1. In the financing activities section, all parentheses for 2011 have been removed. Which numbers should be put in parentheses?
2. In the investing activities section, all parentheses for 2011 have been removed. Which numbers should be put in parentheses?
3. The 2011 values for the change in cash and cash equivalents and for beginning and end-of-year balances have been omitted and replaced with the letters A, B, and C. Provide the proper values for these three missing numbers.
4. Suppose the balance in Retained Earnings at December 31, 2010, was $33,812 million. Compute the Retained Earnings balance at December 31, 2011. Assume that all dividends declared were paid in cash in 2011.
5. Comment on the relation between cash flow from operations and cash used for investing activities.

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McDonald's Corporation Consolidated Statement of Cash Flows, Years Ended December 31 (In millions) 2011 2010 Operating Activities Net income $5,503 4,946 Adjustments to reconcile to cash provided by operations Depreciation and amortization Other noncash expenses 1,415 192 1,276 248 Changes in operating working capital items Accounts receivable Inventories, prepaid expenses, and other current assets Accounts payable Income taxes Other accrued liabilities (161) (52) 36 198 19 7,150 (50) (50) (40) 43 Cash provided by operations Investing Activities 6,342 Capital expenditures Purchases of restaurant businesses Sales of restaurant businesses and property Other (2,136) (183) 378 115 2,571 (2,056) 2,730 186 511 166 Cash used for investing activities Financing Activities Net short-term borrowings (repayments) Long term financing issuances Long term financing repayments Treasury stock purchases Common stock dividends Other 261 1,367 624 3,363 2,610 436 3 1,932 (1,147) (2,699) (2,408) Cash used for financing activitles Effect of exchange rates on cash and cash equivalents Cash and equivalents increase (decrease) Cash and equivalents beginning of year Cash and equivalents at end of year 590 4,533(3,729) (97)34 591 1,796 2,387