Analysis of Statement of Cash Flows
1. What are the cash flows from Operating Activities for the last three years? Is the trend in these cash flows positive, negative or neutral? For each year, is working capital a source or usage of cash?
2. What are the cash flows from investing activities for the last three years? Is the trend in these cash flows positive, negative or neutral? What are the capital expenditure needs for the last three years? Does Kellogg generate enough cash from operations to meet its capital expenditure needs?
3. What are the cash flows from financing activities for the last three years? Is the trend in these cash flows positive, negative or neutral? What are KELLOGG's cash needs for dividends? Does KELLOGG have enough cash available to make dividend payments,after making payments for capital expenditures?
4. Provide a concise assessment of the firm based on sources and usage of cash information provided in the statement of cash flows.