PepsiCo's statement of cash flows for 1992 is reproduced on page 761.

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1. Which format does PepsiCo use for reporting cash flows from operating activities?

2. What was PepsiCo's largest source of cash during 1992? 1991? 1990?

3. The operating activities section of the statement lists (millions):

Did these accounts' balances increase or decrease during 1992? How can you tell?
4. During 1992, PepsiCo sold property, plant, and equipment. The gain or loss on this transaction is included in "Other noncash charges and credits, net" of \(\$ 315.6\) million. Assume that the book value of the plant assets that PepsiCo sold during 1992 was \(\$ 104.3\) million. Journalize the sale of the property, plant, and equipment.
5. During the three-year period 1990 through 1992, PepsiCo engaged in much activity with its long-term debt and short-term borrowings. On the basis of this activity, does PepsiCo appear to be growing or shrinking? Also consider the company's trends of income from continuing operations, cash provided by operations, and investing activities.

Transcribed Image Text:

Accounts and notes receivable............... ($45.7) Accounts payable............ ($102.0)