Real-World Case Following the cash Panera Bread Company (Panera) was formerly known as Au Bon Pain Company (ABP). In May 1999, the ABP division of the company was sold to private investors for $72 million, and assumed the new name.

Panera operates retail bakery-cafes under the names Panera Bread and Saint Louis Bread Company. The following table shows the number of these cafes in operation for five years.

Most of Panera’s baked goods are distributed to the stores in the form of frozen dough. In March 1998, the company sold its frozen dough production facility to the Bunge Food Corporation for $13 million. Panera agreed to purchase its frozen dough from Bunge for at least the next five years.
Panera’s statements of cash flows for 1998, 1999, and 2000 follow.

Required Using the information provided, including a careful analysis of Panera’s statements of cash flows, answer the following questions. Be sure to explain the rationale for your answers and present any computations necessary to support them.

a. Was the sale of the frozen dough production facility for $13 million a cash sale? If so, what did Panera do with the cash it received?

b. Was the sale of the ABP division for $72 million a cash sale? If so, what did Panera do with the cash it received?

c. As shown in the preceding table, Panera has expanded its operations in each of the five years shown.
Approximately how much cash was spent on expansion in 1998, 1999, and 2000, and what were the sources of this cash for each year?