Refer to General Millss statement of cash ows for the year ended May 31, 2009, as

Question:

Refer to General Mills’s statement of cash ﬂ ows for the year ended May 31, 2009, as reproduced at the end of the book.

Required

1. What amount did the company spend on purchases of land, buildings, and equipment during the year? Determine the effect on the accounting equation from these purchases.

2. What amount did the company pay to retire long-term debt during the year? Determine the effect on the accounting equation from the retirement of debt.