Which method does a company use in preparing the Operating Activities

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Which method does a company use in preparing the Operating Activities

Requirements for this assignment paper:
1. Which method, direct or indirect, does each company use in preparing the Operating Activities section of their statements of cash flows? Explain .
2 . By what amount did net cash provided by operating activities increase or decrease from the prior year for each company? What is the largest adjustment to reconcile net income to net cash provided by operating activities for each company?
3. What amount did each company spend during the most recent year to acquire property and equipment? How docs this amount compare with the amount that each company spent in the prior year?
4. What is the primary source of financing for each of the two companies? Did either or both companies buy back some of their own shares during the most recent yea r? If so, what might be some reasons for doing this?

Decision Case 12-1 (p. 667) and answer questions 1-4.
Refer to the statement of cash flows for both Kellogg’s and General Mills for the most recent year and any other pertinent information reprinted at the back of this book.

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