(Learning Objective 6: Preparing and using the statement of cash fl ows) During fi scal year 20X5, Frosted Doughnuts reported net loss of €131.1 million. Frosted received

€1.8 million from the sale of other businesses. Frosted made capital expenditures of

€10.9 million and sold property, plant and equipment for €7.2 million. The company purchased long-term investments at a cost of €11.4 million and sold other long-term investments for €2.2 million.

❙ Requirement 1. Prepare the investing activities section of Frosted Doughnuts’ statement of cash fl ows.

Based solely on Frosted Doughnuts’ investing activities, does it appear that the company is growing or shrinking? How can you tell?