A recent annual report for PepsiCo contained the following information for the period (in millions):

Required: 1. Compute cash flows from operating activities for PepsiCo using the indirect method. 2. Compute the quality of income ratio. 3. What were the major reasons that Pepsi's quality of income ratio did not equal 1 .0?

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Net income Depreciation and amortization Increase in accounts receivable Increase in inventory $1,587.9 1.444.2 161.0 89.5 Decrease in prepaid expense 3.3 Increase in accounts payable 143.2 Decrease in taxes payable 125.1 Decrease in other current liabilities 96.7 Cash dividends paid 461.6 Treasury stock purchased 463.5