Use the Statement of Cash Flows on page 42 to answer questions 3-11

3. Campbell Soup is using the indirect method for the operating activities section of the statement. Explain why Restructuring Charges is being added back to earnings in the operating activities section of the statement. (4 points)

4. Explain why Stock-based Compensation is being added back to earnings in the operating activities section of the statement. (4 points)

5. Did Campbell Soup collect its accounts receivable in the most current year? How can you tell? (3 points)

6. Is Campbell Soup purchasing inventory or using up its current inventory? How can you tell? (3 points)

7. Is Campbell Soup paying down its accounts payable? How can you tell? (3 points)

8. In the Financing Activities section, is Campbell soup borrowing more money or paying back more debt in the most current year? (3 points)

9. Which of the three activities on the cash flow statement produced cash in the most current year? (2 points)

10. Which of the three activities on the flows statement used cash in the most current year? (1 points)

11. Using three complete sentences evaluate the cash flow of Campbell Soup Company. (5 points)

CAMPBELL SOUP COMPANY Consolidated Statements of Cash Flows (millions) 2019 2018 2017 $ 211 $ 261 $ 887 393 748 62 58 60 61 42 103 (258) 318 (187) 446 394 (133) 32 - 2534 14 56 (27) Cash flows from operating activities: Net earnings Adjustments to reconcile net earnings to operating cash flow Impairment charges Restructuring charges Stock-based compensation Amortization of inventory fair value adjustment from acquisition Pension and postretirement benefit expense (income) Depreciation and amortization Deferred income taxes Losses on sales of discontinued operations businesses Other, net Changes in working capital, net of acquisitions and divestitures Accounts receivable Inventories Prepaid assets Accounts payable and accrued liabilities Other Net cash provided by operating activities Cash flows from investing activities: Purchases of plant assets Purchases of route businesses Sales of route businesses Businesses acquired, net of cash acquired Sales of discontinued operations businesses, net of cash divested Other, net Net cash provided by (used in) investing activities Cash flows from financing activities: Short-term borrowings Short-term repayments Long-term borrowings Long-term repayments Dividends paid (11) 36 (1) 125 (64) 1,398 (84) 27 78 (54) 1,305 (48) (55) 1.288 (407) (338) (384) (29) 31 (18) - 10 (6,772) 539 14 153 (19) (7,197) (30) (368) 5,839 (6.296) 8,247 (8,002) 10,222 (9,944) 6,224 (63) (420 211 (702) (433) (490) (420) (420) (426) (86) (437) 2 (23) (47) (50) (22) - (1) Dividends paid Treasury stock purchases Treasury stock issuances Payments related to tax withholding for stock-based compensation Repurchase of noncontrolling interest Payments of debt issuance costs Other, net Net cash provided by (used in) financing activities Effect of exchange rate changes on cash Net change in cash and cash equivalents Cash and cash equivalents beginning of period Cash and cash equivalents discontinued operations beginning of period Cash and cash equivalents discontinued operations - end of period Cash and cash equivalents - end of period (908) 11 (1,591) (7) (47) 49 177 (148) 31 5,807 (8) (93) 37 282 (177) 49 66 230 (282) 37 $ $ $ See accompanying Notes to Consolidated Financial Statements