Archer Daniels Midland (ADM) calls itself the supermarket to the world. It is a leading processor, distributor,
Question:
1. For the years 2001 and 2003, did the following accounts increase or decrease based on your analysis of the statement of cash flows?
¢ Accounts Receivable
¢ Inventory
¢ Accounts Payable
2. For each of the three years reported, has the amount of cash generated through operating activities been sufficient to cover the companys investing activities? Can you identify any trends?
Transcribed Image Text:
Archer Daniels Midland Consolidated Statement of Cash Flows Year Ended June 30, 2002 2003 2001 Operating Activities Net earnings $451,145 511.093 383,284 Adjustments to reconcile to net cash provided by operations Depreciation and amortization Asset abandonments Deferred income taxes 643615 66576 572.390 3,221 05,086 82,927 Amortization of long-term debt discount (Gain) loss on marketable securities transactions... Stock contributed to employee benefit plans. 47.494 (38,588) 23,263 96,138 3.919 49.584 56,160 40.425 30,896 23,591 58,576 Other-net Changes in operating assets and liabilities Receivables Inventories Other assets Accounts payable and accrued expenses 70,895 (27.311) 229,289 557 (407.921) . $1,081,037 $1,301,216 $1,003,157 (134,434 (134,317) (112,460 (119.176) (200,392 72508) (44,197) 266.676 397.483 (39.061) (44. Total Operating Activities Investing Activities Purchases of property. plant and equipment... Net assets of businesses acquired. Investments in and advances to affiliates, net Purchases of marketable securities Proceeds from sales of marketable securities Other-net $(419,876) (349,637) (273.168) (526,970) 40012) (124.639) (147.735) (328,852) (384,149) (269.755) 530,936 (89,983) 2.963 271340 347296 404 (30.922) 1,068,988 (423.135) (315.283) 25,353 Total Investing Activities Financing Activities Long-term debt borrowings Long-term debt payments Net borrowings (payments) under lines of $517,222 7.62 429.124 ( (41.702) 35319)(459826) credit agreements 281,669 174399 (674,350) Purchases of treasury stock Cash dividends (101212) 84519) (62932) (155,565) 130,000 125,053) $226,795 $ (941,123)$ (474,913) Total Financing Activities Increase (Decrease) In Cash And Cash Equivalents. Cash And Cash Equivalents Beginning Of Year Cash And Cash Equivalents End Of Year. $ 238.844 526,115 376,196 $764,959 526,15 589.157 (63,042)$ 212.96 589.157
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Related Book For
Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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