The IFRS-based 2007 and 2008 statements of cash flows published by the Danone Group, a French food processor, are provided below. Briefly describe each of the time items, and comment on the company's cash managementpolicies.

Transcribed Image Text:

CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31 (In € millions) Notes 2007 2008 Net income attributable to the Group Net income attributable to minority interests Net income from discontinued operations Net income of equity-accounts affiliates Depreciation and amortization Dividends received from equity-accounted affiliates Other flows with impact on cash Other flows with no impact on cash Cash flows provided by operating activities, excluding changes in net working capital (Increase) decrease in inventories (Increase) decrease in trade accounts receivable Increase (decrease) in trade accounts payable Changes in other working capital items Net change in current working capital Cash flows provided by (used in) operating activities Capital expenditures Purchase of businesses and other investments net of cash and cash equivalents acquired Proceeds from the sale of businesses and other investments net of cash and cash equivalents disposed of (Increase) decrease in long-term loans and other long-term assets Changes in cash and cash equivalents of discontinued operations Cash flows provided by (used in) investing activities Increase in capital and additional paid-in capital Purchases of treasury stock (net of disposals) Dividends Increase (decrease) in non-current financial liabilities Increase (decrease) in current financial liabilities (Increase) decrease in marketable securities 4,180 158 (3,292) (87) 420 1,313 178 (269) (62) 525 30 29 26 26 (113) 98 21 1,430 (51) (39) 1,699 (74) 36 90 55 1,754 (706) 244 27 181 1,611 (726) (12,100) 26 (259) 4,699 (142) 26 329 67 171 (8,098) (569) 48 66 (439) (622) 3,069 2,614 1,708 6.396 (16) (107) 655 548 46 (705) 1,338 (1,901) 63 (1,111) (31) 43 548 59 Cash flows provided by (used in) financing activities Effect of exchange rate changes on cash and equivalents Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Supplemental disclosures Cash paid during the year: -net interests -income tax 152 369 433 221