Balance Sheet:

Cash Flows:

a. Compare FlowersFoods use of debt vs. equity financing. Provide a brief analysis that includes dollar amounts for each and draws conclusions about whether the Company prefers owner vs. non-owner financing.

December 28, 2019 December 29, 2018 (Amounts in thousands, except share data) S 11,044 285,606 25,306 287,482 ASSETS Current assets: Cash and cash equivalents Accounts and notes receivable, net of allowances of $9,473 and $5,751, respectively Inventories: Raw materials Packaging materials Finished goods 44,502 21,868 56,253 46,171 22,045 58,843 127,059 67,456 62,753 122,623 65,076 43,237 543,724 553,918 Spare parts and supplies Other Total current assets Property, plant and equipment: Land Buildings Machinery and equipment Furniture, fixtures and transportation equipment Construction in progress 94,031 483,859 1,186,636 172,993 44.204 1,981,723 (1,237,876) 743,847 Less: accumulated depreciation 94,646 488,524 1,210,800 165,843 42.820 2010 2,002,633 (1,284,811) 717,822 22.829 22 376,473 198,639 4,408 8.236 545,244 750,207 3,177,776 204,125 6,606 6,927 545,379 794,929 2,845,537 S 3,730 s 5,000 5,896 8,176 52,806 29.380 233,011 201,040 1,283 242,084 146,076 400,339 528,143 862,778 Financing lease right-of-use assets Operating lease right-of-use assets Notes receivable from independent distributor partners Assets held for sale Other assets Goodwill Other intangible assets, net Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt Current maturities of capital leases Current maturities of financing leases Current maturities of operating leases Current postretirement/post-employment obligations Accounts payable Other accrued liabilities Total current liabilities Long-term debt and right-of-use lease liabilities: Noncurrent long-term debt Noncurrent capital lease obligations Noncurrent financing lease obligations Noncurrent operating lease obligations Total long-term debt and right-of-use lease liabilities Other liabilities: Post-retirement/post-employment obligations Deferred taxes med taxes Other long-term liabilities Total other long-term liabilities Commitments and contingencies Stockholders' equity: Preferred stock - $100 stated par value, 200,000 authorized and none issued Preferred stock - S.01 stated par value, 800,000 authorized and none issued Common stock - 3.01 stated par value and $.001 current par value; 500,000,000 authorized shares; 228,729,585 issued shares Treasury stock - 17,215,514 and 17,834,378 shares, respectively Capital in excess of par value Retained earnings Accumulated other comprehensive loss Total stockholders' equity Total liabilities and stockholders' equity 974,594 16,046 19,390 324,131 1,206,299 990,640 14,328 121,395 44,181 179,904 39,149 102,658 54,484 196,291 199 (226,287) 648,492 947,046 (106,020) 1,263,430 3,177,776 199 (231,648) 653,477 945,410 (109,171) 1,258,267 2,845,537 Fiscal 2019 52 weeks Fiscal 2018 52 weeks (Amounts in thousands) Fiscal 2017 52 weeks S 164,538 S 157,160 S 150,120 21,062 5,593 69,601 (28,875) 146,719 144.228 7,430 (3,707) 18,609 337 11,034 3,234 1,579 (2,500) 144,124 5,999 8,148 1,301 21,657 740 6,963 8,474 (4,839) (40.700) 16,093 2,080 (61,306 1,684 4,215 (897) (6,203 (1.605) (7,809) (4,774) 10,289 (14,155) (8,278) (8,424) 2,725 60,863 (65,613) 295,893 (11,762) (7,801) (15.727) 10,840 17,557 30,213 366,952 297,389 (103,685) (2,705) (22,644) 29,173 (99,422 128) (28,454) 26,883 (200,174) (75,232) (6,460) (25,566 24,875 Cash flows provided by (disbursed for) operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Restructuring and related impairment charges Gain on divestiture Depreciation and amortization Impairment of assets Stock-based compensation (Gain) loss reclassified from accumulated other comprehensive income to net income Deferred income taxes Provision for inventory obsolescence Allowances for accounts receivable Pension and postretirement plans expense (benefit) Other Qualified pension plan contributions Changes in operating assets and liabilities, net of acquisitions and disposals: Accounts receivable, net Inventories, net Hedging activities, net Accounts payable Other assets and accrued liabilities Net cash provided by operating activities Cash flows provided by (disbursed for) investing activities: Purchases of property, plant and equipment Repurchase of independent distributor territ Cash paid at issuance of notes receivable Principal payments from notes receivable Acquisition of businesses, net of cash acquired Proceeds from sale of mix plant Proceeds from sales of property, plant and equipment Other investing activities Net cash disbursed for investing activities Cash flows provided by (disbursed for) financing activities: Dividends paid, including dividends on share-based payment awards Exercise of stock options Payments for debt issuance costs Stock repurchases Change bank overdrafts Proceeds from debt borrowings Debt obligation payments Payments on financing leases Net cash (disbursed for) provided by financing activities Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Schedule of non-cash investing and financing activities: Issuance of executive deferred compensation plan common stock Capital lease obligations Right-of-use assets obtained in exchange for new financing lease liabilities Right-of-use assets obtained in exchange for new operating lease liabilities Issuance of notes receivable on new distribution territories, net Distributor routes sold with deferred gains, net Purchase of property, plant and equipment included in accounts payable Supplemental disclosures of cash flow information: Cash paid during the period for: Interest Income taxes paid, net of refunds of $460, $40 and $236, respectively 2,649 119 (97,093) 1,913 577 (301,805) 41,230 3,935 1,823 (35,395) (159,987) (150,214) 791 (100) (2,489) 4,851 200,900 (140,982) 19,313 (729) (2,671) (14,206 611,900 (735,900) (27,650 (110) (7,054) 3,217 609.250 (723,500) (5,937) (284,121) (14,262) 25,306 11,044 26,089 20,177 5,129 25,306 (263,275 (1,281) 6,410 5,129 $ S S 6 S 124 1,977 38 3,337 S S S $ $ $ $ 9,854 44,585 50,532 241 5,983 S S S $ S S S S s S S S 45,528 8,770 901 60,594 9,707 2.991 S $ $ 36,430 39,121 $ S 32,747 13,697 S S 34,196 71,996