Q$1-$ The Coca$-$Cola Company $($Coca$-$Cola$)$ manufactures and markets a variety of beverages. Exhibit below presents a statement of cash flows for Coca$-$Cola for three years. The Coca$-$Cola Company Statement of Cash Flows $($amounts in millions$)$ Year Ended December $31,$Year$3$Year$2$Year$1$OPERATING ACTIVITIESNet income$5,807\mathrm{.}005,981\mathrm{.}005,080\mathrm{.}00$Depreciation and amortization$1,228\mathrm{.}001,163\mathrm{.}00938\mathrm{.}00$Stock$-$based compensation expense$266\mathrm{.}00313\mathrm{.}00324\mathrm{.}00$Deferred income taxes$(360\mathrm{.}00)109\mathrm{.}00(35\mathrm{.}00)$Equity income or loss, net of dividends$1,128\mathrm{.}00(452\mathrm{.}00)124\mathrm{.}00$Foreign currency adjustments$(42\mathrm{.}00)9\mathrm{.}0052\mathrm{.}00$Gains on sales of assets, including bottling interests$(130\mathrm{.}00)(244\mathrm{.}00)(303\mathrm{.}00)$Other operating charges$209\mathrm{.}00166\mathrm{.}00159\mathrm{.}00$Other items$153\mathrm{.}0099\mathrm{.}00233\mathrm{.}00$Net change in operating assets and liabilities$(688\mathrm{.}00)6\mathrm{.}00(615\mathrm{.}00)$Net Cash Provided by Operating Activities$7,571\mathrm{.}007,150\mathrm{.}005,957\mathrm{.}00$INVESTING ACTIVITIESAcquisitions and investments, principally beverage and bottlingcompanies and trademarks$(759\mathrm{.}00)(5,653\mathrm{.}00)(901\mathrm{.}00)$Purchases of other investments$(240\mathrm{.}00)(99\mathrm{.}00)(82\mathrm{.}00)$Proceeds from disposals of bottling companies and otherinvestments$479\mathrm{.}00448\mathrm{.}00640\mathrm{.}00$Purchases of property, plant, and equipment$(1,968\mathrm{.}00)(1,648\mathrm{.}00)(1,407\mathrm{.}00)$Proceeds from disposals of property, plant, and equipment$129\mathrm{.}00239\mathrm{.}00112\mathrm{.}00$Other investing activities$(4\mathrm{.}00)(6\mathrm{.}00)(62\mathrm{.}00)$Net Cash Used in Investing Activities$(2,363\mathrm{.}00)(6,719\mathrm{.}00)(1,700\mathrm{.}00)$FINANCING ACTIVITIESIssuances of debt$4,337\mathrm{.}009,979\mathrm{.}00617\mathrm{.}00$Payments of debt$(4,308\mathrm{.}00)(5,638\mathrm{.}00)(2,021\mathrm{.}00)$Issuances of stock$586\mathrm{.}001,619\mathrm{.}00148\mathrm{.}00$Purchases of stock for treasury$(1,079\mathrm{.}00)(1,838\mathrm{.}00)(2,416\mathrm{.}00)$Dividends$(3,521\mathrm{.}00)(3,149\mathrm{.}00)(2,911\mathrm{.}00)$Net Cash Provided by $($Used in$)$ Financing Activities$(3,985\mathrm{.}00)973\mathrm{.}00(6,583\mathrm{.}00)$Effect of exchange rate changes on cash and cash equivalents$(615\mathrm{.}00)249\mathrm{.}0065\mathrm{.}00$CASH AND CASH EQUIVALENTSNet Increase $($Decrease$)$ During the Year$608\mathrm{.}001,653\mathrm{.}00(2,261\mathrm{.}00)$Balance at beginning of year$4,093\mathrm{.}002,440\mathrm{.}004,701\mathrm{.}00$Balance at End of Year$4,701\mathrm{.}004,093\mathrm{.}002,440\mathrm{.}00-$REQUIREDDiscuss the relations between net income and cash flow from operations and among cash flows from operating, investing, and financing activities for the firm over the three$-$year period. Identify characteristics of Coca$-$Colas