Refer to Krispy Kreme’s financial statements in Appendix A to answer the following:

1. Is Krispy Kreme’s statement of cash flows prepared under the direct method or the indirect method?

2. For each fiscal year 2003, 2002, and 2001, is the amount of cash provided by operating activities more or less than the cash paid for dividends?

3. What is the largest amount in reconciling the difference between net income and cash flow from operating activities in 2003? In 2002? In 2001?

4. Identify the largest cash flows for investing and for financing activities in 2003 and in 2002.

Roll On 5. Obtain Krispy Kreme’s financial statements for a fiscal year ending after February 2, 2003, from either its Website fKrispvKreme.com) or the SEC’s EDGAR database fwww.SEC.gov). Since February 2, 2003, what are Krispy Kreme’s largest cash outflows and cash inflows in the invest¬

ing and in the financing sections of its statement of cash flow?