Refer to Campbell Soup Companys statement of cash flows in Appendix A. Required: Convert Campbells statement of

Question:

Refer to Campbell Soup Company’s statement of cash flows in Appendix A.

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.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...