Procter & Gamble Company is a multinational manufacturer of products including personal care, household cleaning, laundry detergents, prescription drugs, and disposable nappies. Here are the company's statements of cash flows from its 2009 annual report:

Required:

1. In the three years reported, what were P&G's primary investing activities? How were these activities financed? Be specific.

2. During the most recent fiscal year, P&G purchased certificates of deposit. How were these purchases reported in the statement of cash flows? (Note: This is not an investing activity.)

3. How are issuances of debt securities and issuances of equity securities classified in a statement of cash flows?

4. How are payments to investors in debt securities (interest) and payments to investors in equity securities (dividends) classified in a statement of cash flows? Is this a conceptual inconsistency? Explain.

5. P&G's statement of cash flows reports expenditures for acquisition of businesses. It also reports additions to long-term debt. Suppose the businesses had been acquired, not with cash, but by exchange for debt securities. Would such a transaction be reported? Explain.