Question

Below are approximate amounts related to cash flow information reported by five companies in previous years. 1. Kraft Foods reports operating cash flows of $3.54 billion, investing cash flows of $0.54 billion, and financing cash flows of -$4.08 billion 2. Sara Lee reports operating cash flows of $1.34 billion, investing cash flows of - $0.24 billion, and financing cash flows of -$1.28 billion. The beginning cash amount is $0.64 billion 3. Performance Food Group reports operating cash flows of $0.07 billion, Investing cash flows of $0.57 billion, and a change in total cash of $0.04 billion. 4. Smithfield Foods reports operating cash flows of $0.54 billion, financing cash flows of $0.36 billion, and a change in total cash of $0.02 billion. 5. Tyson Foods reports investing cash flows of -$1.30 billion, financing cash flows of $0.97 billion, and a change in total cash of $0.02 billion. (Enter your answers in billions rounded to 2 decimal places.) Required: 1. What is the amount of the change in total cash of Kraft Foods? Change in total cash billion 2. What is the ending cash amount of Sara Lee? Ending cash amount billion

Answer 1

Solution 1:

Amount of change in total cash = Operating cash flow + Investing cash flow + Financing cash flow

= $3.54 + $0.54 - $4.08 = $0 billion

Solution 2:

Ending cash amount of sara lee = Beginning cash balance + Net change in cash

= $0.64 + ($1.34 - $0.24 - $1.28) = $0.46 billion

Solution 3:

Cash from financing activities = ($0.07 + $0.57) - $0.04 = $0.60 billion - amount of outflows

Solution 4:

Cash flow from investing activities = ($0.54 + $0.36) - $0.02 = $0.88 billion - Amount of outflows

Solution 5:

Cash flow from operating activities = ($1.30 + $0.02) - $0.97 = $0.35 billion = Amount of inflows