Question

Refer to Campbell Soup Company’s statement of cash flows in Appendix A.

Required:
Convert Campbell’s statement of cash flows for Year 11 to show cash flows from operations (CFO) using the direct method.
For purposes of this problem only, assume the following:
a. Net change in other current assets and current liabilities of $30.6 consists of:
Decrease in prepaid expenses . . . . . . $(25.3)
Decrease in accounts payable . . . . . . 42.8
Increase in taxes payable. . . . . . . . . . (21.3)
Increase in accruals and payrolls . . . (26.8)
$(30.6)
b. Campbell disposed of a division in Year 11 reporting revenues of $7.5 million and an after-tax loss of $5.3 million. The loss is included in expenses. The CFO presentation should include revenues and expenses of the discontinued operations in Year 11.



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  • CreatedJanuary 22, 2015
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