Capital Expenditures at the Archer Daniels Midland Company Obtain Archer Daniels Midland Company’s (ADM) Form 10-Ks for the fiscal year ending on June 30, 2006 and 2009. To obtain the Form 10-Ks you can use either the EDGAR system following the instructions in Appendix A, or it can be found under the “Investor Relations” link on the company’s website at www.admworld.com/naen. Read the “General Development of Business” under the “Item I. Business” section of the 2006 10-K, and the Statement of Cash Flows and Note 15 of the 2009 10-K.
Required
a. What major plant expansions did ADM announce during 2006? How much does ADM estimate these expansions will cost?
b. How much did ADM spend on investing activities in its 2009 and 2008 fiscal years?
c. Where did ADM get the cash used to make these investments?
d. How much of ADM’s investments in new property, plant, and equipment was related to its “corn processing” segment in 2009 and 2008?