ACTIVITY 6 Purpose: - Understand information provided by the Statementing, investing, and financing The stater activities, activities. - Understand that cash flows are orgaties. activitien Business activities can be classified into three distinct categories: operating, investung, and financing. Operating Activities relate to a company's main business of selling products or services to earn net income. Investing Activities relate to the need for investing in property, plant, and equipment or expanding by making investments in other companies. Financing Activities relate to how a company finances its assets-with debt or stockholders' equity. The Statement of Cash Flows describes a company's cash inflows and outflows for each of these three areas. Q1 Use Pepsico's 2010 statement of cash flows above to answer the following questions: a. Pepsico's operating activities generated cash inflows of $8,448 million. b. Pepsico purchased property, plant, and equipment, which resulted in a cash (inflow / outflow) of \$ million from (operating / investing / financing) activities. c. Pepsico borrowed money, which resulted in a cash (inflow / outflow) of $ million from (operating / investing / financing) activities. d. At the beginning of 2010 , cash was $3.943 million. During the year, cash (increased / decreased) by $000 million, resulting in an ending cash balance of million. e. Cash at the end of 2010 is the (same as / different than) cash at the beginning of 2011