A. Assess Darden's financial performance and outlook based only on its statement of cash flows. You can use other information to provide context for the information on the SCF, but otherwise, you should base your answer only on its statement of cash flows. B. Comment on how Dardens return on equity has been trending, using the three component ratios of the Dupont equation. Suggest two concrete, specific, ways that Darden could improve its ROE. C. Calculate Darden's liquidity ratios for the last two years and comment on any trends therein.

		Fiscal Year Ended
	May 28, 2023	May 29, 2022	May 30, 2021
Cash flows - operating activities
Net earnings	$ 981.90	$ 952.80	$ 629.30
Losses from discontinued operations, net of tax	1.60	1.90	3.10
Adjustments to reconcile net earnings (loss) from
continuing operations to cash flows:
Depreciation and amortization	387.80	368.40	350.90
Impairments and disposal of assets, net	(10.60)	(2.00)	6.60
Stock-based compensation expense	67.50	60.50	72.40
Change in current assets and liabilities	175.70	(96.70)	(25.90)
Contributions to pension and postretirement plans	(2.10)	(2.20)	(1.80)
Deferred income taxes	(59.50)	(23.70)	169.20
Change in other assets and liabilities	9.00	(7.40)	23.00
Other, net	1.50	13.00	(33.30)
Net cash provided by operating activities of continuing
operations	$ 1,552.80	$ 1,264.60	$ 1,193.50
Cash flows - investing activities
Purchases of land, buildings and equipment	(564.90)	(376.90)	(254.90)
Proceeds from disposal of land, buildings and equipment	25.40	10.10	5.40
Purchases of capitalized software and other assets	(29.40)	(25.60)	(15.40)
Other, net	0.50	3.40	1.20
Net cash used in investing activities of continuing
operations	$ (568.40)	$ (389.00)	$ (263.70)
Cash flows - financing activities
Net proceeds from issuance of common stock	35.40	40.20	46.20
Dividends paid	(589.80)	(563.00)	(202.60)
Repurchases of common stock	(458.70)	(1,071.30)	(45.40)
Repayments of short-term debt	(427.00)	-	(270.00)
Proceeds from issuance of short-term debt	427.00	-	-
Principal payments on finance leases	(19.80)	(12.90)	(7.10)
Other, net	(0.20)	(2.70)	-
Net cash used in financing activities of continuing
operations	$ (1,033.10)	$ (1,609.70)	$ (478.90)
Cash flows - discontinued operations
Net cash provided by (used in) operating activities of
discontinued operations	(7.20)	(8.50)	0.50
Net cash provided by (used in) discontinued operations	$ (7.20)	$ (8.50)	$ 0.50
(Decrease) increase in cash and cash equivalents	(55.90)	(742.60)	451.40
Cash and cash equivalents - beginning of year	472.10	1,214.70	763.30
Cash and cash equivalents - end of year	$ 416.20	$ 472.10	$ 1,214.70