Go to Connect online for the financial statements of Cadbury plc and related notes.

Required:

1. What were the three largest adjustments to reconcile profit from operations to the net cash provided by operating activities? Refer to Note 34 of the financial statements. Explain the direction of the effect of each adjustment in the reconciliation.

2. What have been Cadbury plc's major uses of cash over the past two years? What have been its major sources of cash for these activities?

3. What was the amount of free cash flow for the year ended December 31, 2008? What does this imply about the company's financial flexibility?