Question

ConAgra Foods, Inc. is one of North America’s leading food companies with brands such as Banquet and Healthy Choice. Its 2011 sales exceeded $12 billion. ConAgra’s 2011 statement of cash flows included the following items, among others ($ in millions):

Cash dividends paid                                      $ (374.5)

Repurchase of ConAgra Foods common shares (825.0)

Additions to property, plant, and equipment (466.2)

Depreciation and amortization                         360.9

Exercise of stock options and issuance of other stock awards           59.7

Sale of property, plant, and equipment             18.9

Increase in inventories                                     (190.7)

Net income                                                       818.8

Repayments of long-term debt                       (294.3)

Other financing items                                         2.1

Prepare the section “Cash flows from financing activities” from ConAgra’s 2011 annual report. All items necessary for that section appear in the preceding list. The list also includes some items from other sections that should not be included among the financing activities.

    Did ConAgra’s financing activities increase or decrease cash during 2011? By how much? What were the main causes of this increase or decrease?

Answer 1

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ConAgra Foods, Inc.
Cash Flow from Financing Activities	Million $
Cash dividends paid	(374.50)
Repurchase of ConAgra Foods common shares	(825.00)
Exercise of stock options and issuance of other stock awards	59.70
Repayments of long-term debt	(294.30)
Other financing items	2.10
Net Cash used by Financing Activities	(1,432.00)
ConAgra’s financing activities decrease cash during 2011.
By $ 1,432 .
The main causes of this increase or decrease are:
Payment of dividends
Repurchase of common shares
Repayments of long-term debt