Sara Lee Corporation, a food Products Company headquartered in Chicago, Illinois, recently reported the following cash flow statement.

Required
Use the information from the statement of cash flows for Sara Lee Corporation to answer the following questions.
A. What was the amount of change in Sara Lee’s cash account for 2002?
B. What were the primary sources of cash for the company?
C. What were the primary uses of cash?
D. Why were depreciation and amortization added to net income in computing cash flow from operating activities?
E. Why were the decreases in inventories and trade accounts receivable added to net income in computing cash flow from operating activities?
F. Why were the purchase of property and equipment, sales of assets and acquisitions of businesses listed as investing activities?
G. Did short-term debt increase or decrease during the year?
H. How much new long-term debt was issued during the year? How much old long-term debt was paid off?

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Consolidated Statements of Cash Flows Years June 29 June 30, July 1, Ended 2002 Dollars in millions Operating Activities Income from continuing operations Adjustments for non-cash charges included in income 2001 1.0101,603 $.158 from continuing operations 471 207 Unusual items Gain on disposal of Coach business (967) Charges for exit activities and business dispositions Increase in deferred taxes Other non-cash credits, net 101 Changes in current assets and liabilities, net of businesses acquired and sold Decrease increase) in trade accounts receivable Decrease increase) in other current assets Increase (decrease) in accrued liabilities Decrease increase) in inventories 152) (47) (133) 1,520 7351.496 (417) 27(164)57 1.456 1.540 647) Net cash from operating activities -continuing operations Operating cash flows (used by) from discontinued operations Net cash from operating activities Investment Activities Purchases of property and equipment Acquisitions of businesses and investments Dispositions of businesses and investments Sales of assets Other (1,930) (743) 1,819 113 13 Net cash (used in) from investment activities Financing Activities Issuances of common stock Purchases of common stock Borrowings of long-term debt Repayments of long-term debt Short-term borrowings (repayments), net 1.296) 109 (138) 1.362 104 1,023 124 (1,914) (643) (1,032) 725 1.022 of dividends Net cash from (used in) financing activities excha rates on cash 20(21) (21) (Decrease) increase in cash and equivalents Cash and equivalents at beginning of year Cash and equivalents at end of 250) 314 298 314