The cash flow statements for 3 years for B&B Beverage are below. B&B Beverage is #1 in their industry. a. What is the relationship between net income and cash flow from operating, investing, and financing activities for B&B over the 3 year period. b. Identify the characteristics of B&B Beverage you would expect of a mature company. Year Ended December 31, Year 3 Year 2 Year 1 OPERATING ACTIVITIES Net income Depreciation and amortization $5,807 $ 5,981 $ 5,080 1,228 1,163 938 Stock-based compensation expense 266 313 324 Deferred income taxes (360) 109 (35) Equity income or loss, net of dividends 1,128 (452) 124 Foreign currency adjustments (42) 9 52 Gains on sales of assets, including bottling interests (130) (244) (303) Other operating charges 209 166 159 Other items 153 99 233 Net change in operating assets and liabilities (688) 6 (615) Net Cash Provided by Operating Activities $7,571 $7,150 $5,957 INVESTING ACTIVITIES Acquisitions and investments, principally beverage and bottling companies and trademarks $ (759) $(5,653) $ (901) Purchases of other investments (240) (99) (82) Proceeds from disposals of bottling companies and other investments 479 448 640 Purchases of property, plant, and equipment (1,968) (1,648) (1,407) Proceeds from disposals of property, plant, and equipment 129 239 112 Other investing activities (4) (6) Net Cash Used in Investing Activities $(2.363) $(6,719) (62) $(1,700) FINANCING ACTIVITIES Issuances of debt $4,337 $9,979 Payments of debt (4,308) (5,638) $ 617 (2,021) Issuances of stock 586 1,619 148 Purchases of stock for treasury (1,079) (1,838) (2416) Dividends (3,521) (3,149) (2,911) Net Cash Provided by (Used in) Financing Activities Effect of exchange rate changes on cash and cash equivalents $(3.985) $973 $(6,583) $(615) $ 249 $ 65 CASH AND CASH EQUIVALENTS Net Increase (Decrease) During the Year Balance at beginning of year Balance at End of Year $ 608 $1,653 4,093 $4,701 2,440 $(2,261) 4,701 $4,093 $2.440