Refer to General Mills fiscal 2006 Statement of Cash Flows.

1. Compare General Mills net earnings to net cash provided by operating activities and explain the difference.
2. How much cash did General Mills use for expenditures for land, building and equipment during fiscal 2006?
3. What amount of dividends did General Mills pay during the year?

GENERAL MILLS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Ma: 28, 2006 May 30, 2004 Cash Flows -Operating Activities 1,090 1,240 $1,055 Net earnings Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization Deferred income taxes Changes in current assets and liabilities Tax benefit on exercised options Pension and other postretirement costs Restructuring and other exit costs Divestitures (gain) Debt repurchase costs Other, net 424 443 109 184 258 62 (70) 84 63 (74) 26 Net Cash Provided erating Activities 1,771 1,711 1,461 Cash Flows Investing Activities (653) Purchases of land, buildings and equipment Investments in businesses Investments in affiliates, net of investment returns and dividends Purchases of marketable securities Proceeds from sale of marketable securities Proceeds from disposal of land, buildings and equipment Proceeds from disposition of businesses (360) (26) 78 (434) 129 799 Net Cash Provided (Used) by Investing Activities 496 Cash Flows-Financing Activities 1,197 (1,023) 576 Change in notes payable Issuance of long-term debt Payment of long-term debt Proceeds from issuance of preferred membership interests of subsidiary Common stock issued Purchases of common stock for treasury Dividends paid (1,386) 157 (885) (485) 835 195 (771) 192 (24) 413 13 Net Cash Used by Financing Activities 943 Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents-Beginning of Year Cash and Cash Equivalents End of Year (178) 573 647 703 $ 751 S 573 Cash Flow from Changes in Current Assets and Liabilities: Receivables Inventories Prepaid expenses and other current assets Accounts payable $ (22) (19) 247 201 Changes in Current Assets and Liabilities $ 184 258 See accompanying notes to consolidated financial statements