Refer to Campbell Soup Company”s statement of cash flows Required:
Convert Campbell”s statement of cash flows for Year 11 to show cash flows from operations
(CFO) using the direct method. For purposes of this problem only, assume the following:
a. Net change in other current assets and current liabilities of $30.6 consists of:
|
Decrease in prepaid expenses |
$(25.3) |
|
Decrease in accounts payable |
42.8 |
|
Increase in taxes payable |
(21.3) |
|
Increase in accruals and payrolls |
(26.8) |
|
$(30.6) |
b. Campbell disposed of a division in Year 11 reporting revenues of $7.5 million and an after-tax loss of $5.3 million. The loss is included in expenses. The CFO presentation should include revenues and expenses of the discontinued operations in Year 11.