Use the 2008 statement of cash flows for The Coca-Cola Company on the next page to answer the following questions:

1. Compute Coca-Cola's "Net cash provided by operations after reinvestment." This amount is computed by subtracting "Net cash from investing activities" from "Net cash from operating activities." Interpret the results of the calculation for Coca-Cola for the period 2006–2008.

2. In its operating activities section, Coca-Cola subtracts gains on sales of assets in computing net cash from operating activities. Why are these gains subtracted?

3. Think of the dealings that Coca-Cola has with its shareholders. The shareholders give money to the company by purchasing new shares of stock. In turn, the company returns cash to shareholders by paying cash dividends and by repurchasing shares of stock. For the three-year period 2006–2008, did Coca-Cola receive more cash from its shareholders than it paid back to them, or did it pay more cash to its shareholders than it received? Show your calculations.

4. Look carefully at the statement of cash flows. Did the U.S. dollar get stronger or weaker during the three-year period2006–2008?

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The Coca-Cola Company and Subsidiaries Consolidated Statements of Cash Flows For the Years Ended December 31, 2006, 2007, 2008 (in millions) 2007 2008 2006 Operating activities $ 5,981 1,163 313 S 5,080 S 5,807 1,228 266 Net income Depreciation and amortization. Stock-based compensation expense Deferred incorne taxes. 938 324 (360) 1,128 (42) 109 (35) 124 52 (303) Equity income or loss, net of dividends Foreign currency adjustments Gains on sales of assets, including bottling interests Other operating changes Other itens. Net change in operating assets and liabilties Net cash from operating activities (452) (130) 209 (244) 166 159 153 (688) 99 6. $7,150 233 (615) $5,957 S7,571 Investing activities Acquisitions and investments, principaly trademarks and botting companies Purchases of other investments S (759) (240) S (901) 182) $15,653) (99) Proceeds from disposals of investments and other assets Purchases of property, plant and equipment Proceeds from disposals of property, plant and equipment Other investing activities. Net cash from investing activities 479 448 640 (1,968) (1,648) (1,407) 129 (4) 239 (6) 112 (62) S1,700 S16.719) S12,363) Financing activities Issuances of debt Payments of debt Issuances of stock Purchases of stock for treasury $ 617 (2,021) $4,337 (4,308) 586 (1,079) (3,521) $13,985) S (615) $9,979 (5,638) 1,619 (1,838) (3,149) $ 973 $ 249 148 (2,416) (2,911) S16,583) S 65 Dividends Net cash from financing activities Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents: Net increase during the year Balance at beginning of year Balance at end of year. $ 608 4,093 $4,701 $1,653 2,440 $4,093 S12,261) 4,701 $2,440