Question
Transform the following statement of cash flows into a statement of free cash flows. Keep an integer number for FCF each year.: CONSOLIDATED STATEMENT OF
Transform the following statement of cash flows into a statement of free cash flows. Keep an integer number for FCF each year.:
CONSOLIDATED STATEMENT OF CASH FLOWS (millions) | |||
Operating activities | 2011 | 2010 | 2009 |
Net income | $1,229 | $1,240 | $1,208 |
Depreciation and amortization | 369 | 392 | 384 |
Deferred income taxes | 84 | 266 | -40 |
Other | -57 | 103 | 1 |
Postretirement benefit plan contributions | -192 | -643 | -100 |
Changes in operating assets and liabilities: | |||
Trade receivables | -100 | 59 | -75 |
Inventories | -76 | -146 | -13 |
Accounts payable | 40 | 72 | -59 |
Accrued income taxes | 132 | -192 | 112 |
Accrued and prepaid advertising, promotion and trade allowances | 4 | -12 | 91 |
Accrued salaries and wages | 89 | -169 | 42 |
All other current assets and liabilities | 45 | 35 | 85 |
Total cash flow from operating activities | $1,567 | $1,005 | $1,636 |
Investing activities | |||
Short-term investments in financial assets, net | 15 | 8 | 5 |
Acquisition of property, plant, and equipment | -587 | -465 | -370 |
Total cash flow from investing activities | -572 | -457 | -365 |
Financing activities | |||
Net increase (reduction) of notes payable, with maturities less than or equal to 90 days | 189 | -1 | -1284 |
Issuances of notes payable, with maturities greater than 90 days | 0 | 0 | 10 |
Reductions of notes payable, with maturities greater than 90 days | 0 | 0 | -70 |
Issuances of long-term debt | 895 | 987 | 1241 |
Reductions of long-term debt | -945 | -1 | -482 |
Net issuances of common stock | 291 | 204 | 131 |
Common stock repurchases | -798 | -1052 | -187 |
Cash dividends | -604 | -584 | -546 |
Other | -7 | 9 | -5 |
Total cash flow from financing activities | -979 | -438 | -1192 |
Net interest paid | 233 | 248 | 295 |
Tax rate | 29.04% | 28.82% | 28.27% |
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