A condensed version of the Fruity Company statement of cash flows follows.

(Click the icon to view the condensed statement of cash flows.)

(DATA!!!) (millions) It goes in order everytime for the data. couldnt upload chart so 2011, 2010, 2009

2011

2010

2009

Operating Activities

Net earnings

$1,090------2011

$1,135------2010

$1,210-----2009

Items in net earnings not requiring (providing) cash (blank)

Depreciation and amortization

247-----2011

293-----2010

288-----2009

Other noncash expenses (revenues)

(262)

(450)

197

Changes in operating assets and liabilities

63

24

105

Net cash provided by operating activities

1,138

1,002

1,800

Investing Activities (blank)

Additions to properties

(462)

(671)

(448)

Other

7

22

5

Net cash used in investing activities

(455)

(649)

(443)

Financing Activities (blank)

Reductions of notes payable

(357)

(1,280)

(579)

Issuances of notes payable

250

820

1,200

Issuances of long-term debt

575

850

225

Reductions of long-term debt

(505)

(820)

(145)

Net issuances of common stock

176

172

228

Common stock repurchases

(665)

(670)

(680)

Cash dividends

(530)

(680)

(415)

Other

105

716

32

Net cash used in financing activities

(951)

(892)

(134)

Increase (decrease) in cash and cash equivalents

$(268)

$(539)

$1,223

Requirements

Use the statement to answer the following two questions.

1.

What was Fruity's free cash flow for each of the 3 years shown?

2.

What does the free cash flow tell us about Fruity's ability to generate sufficient cash flow from operations to cover ongoing investing activities and pay dividends to its shareholders?

Requirement 1. What was Fruity's free cash flow for each of the 3 years shown?

Select the formula needed to solve for this amount and then enter the amounts to compute Fruity's free cash flow for each of the 3 years

(in millions)	2011	2010	2009
Free cash flows before dividends
Free cash flows after dividends

(choises for 1st column)

-Add Depreciation

-Add property disposals

-Financing cash flow

-Invesing cash flow

-Less: additions to properties

-Less: dividends

-Less: reductions of long term debt

-Less: reductions of notes payable

-Operating cash flow

Requirement 2.

Fruitys has (insufficient, plenty of) cash flow from operations in (2009 and 2010, 2009 and 2011, 2010 and 2011)

each year to meet its capital investment needs and its dividends. However, in (2009, 2010, 2011) its free cash flow after dividends was negative, due mainly to a (Large addition to properties, reduction in operating cash flow).