Additionally, acquisitions of businesses represented a significant investment activity of the company in fiscal 2003 and 2004. Fiscal 2003 included the December 2002 acquisition of the Diamond Crystal Brands business (with a final purchase price of $124,528, including related costs) and the July 2003 acquisition of the Century Foods International (CFI) business. In fiscal 2004, the company paid an additional $2,053 following a final working capital valuation for CFI, resulting in a final purchase price of $118,552, including related costs. The company also acquired the  Chi-Chi’s trademark for $2,241 and purchased the assets of Concept Foods, Inc. for $17,102 during the fourth quarter. The company continues to pursue acquisition opportunities that complement its growth strategies and product offerings. Selected financial ratios at the end of fiscal 2004 and 2003 are  as follows: Liquidity and Capital Resources Fiscal 2004 fixed asset expenditures were $80,363 compared to $67,104 in the prior year. The company estimates its fiscal 2005 expenditures will increase to $100,000 and exceed estimated depreciation expense. The main reason for the expected increase is a new further processing plant being built in Albert Lea, Minnesota, that will be utilized by the Refrigerated Foods segment. Cash and cash equivalents were $288,881 at the end of fiscal 2004 compared to $97,976 at the end of fiscal 2003.  During fiscal 2004, cash provided by operating activities was $294,730 compared to $253,250 last year. The increase in cash provided by operating activities is primarily due to improved net earnings, combined with decreased accounts receivable balances resulting from improvements in the company’s receivables turnover. Inventories and liabilities also increased in fiscal 2004, driven by higher raw material costs as compared to the prior year. Cash flow from operating activities provides the company with its principal source of liquidity. The company does not anticipate a significant risk to cash flow from this source in the foreseeable future because the company operates in a relatively stable industry and has strong products across several product lines. Cash used in financing activities was $122,144 in fiscal 2004 compared to $70,557 in fiscal 2003. The higher amount of cash used in fiscal 2004 includes an increase of $18,356 in principal payments on the company’s long term debt compared to fiscal 2003. Cash dividends paid to the company’s shareholders also continues to be a significant financing activity for the company. Dividends paid in fiscal 2004 were $61,343 compared to $57,092 paid in the previous fiscal year. The company has paid dividends for 305 consecutive quarters and expects to continue doing so in the future. The annual dividend for fiscal 2005 will increase to $.52 per share, up from $.45 per share in fiscal 2004, representing the company’s 39th consecutive annual dividend increase. The company is required, by certain covenants in its debt agree- ments, to maintain specified levels of financial ratios and balance sheet position. At the end of fiscal 2004, the company was in compliance with all of these debt covenants. Additionally, $37,525 was used for common stock repurchases in fiscal 2004 compared to $6,119 in the prior year. During the year, the company repurchased 1,379,400 shares of its common stock at an average price per share of $27.21 under the repurchase plan approved by the company’s Board of Directors in October 2002. These repurchases result in a total of 1,601,628 shares having been repurchased under this 10 million share repurchase plan through October 30, 2004. Cash provided by investing activities was $18,319 in fiscal 2004 compared to cash used in investing activities of $394,280 in fiscal 2003. The cash provided by investing activities in fiscal 2004  primarily reflects the $84,249 proceeds received in the second quarter sale of the remaining equity interest in the Spanish food company Campofrio Alimentacion, S.A. and the $42,525 proceeds received in the third quarter sale of Vista International Packaging, Inc. The decrease in cash used for investing activities is also due to changes in the funding of various benefit plans. Fiscal 2003 investing activities included the company’s first quarter funding of $56,000 to a rabbi trust for supplemental executive retirement plans and deferred income plans and the third quarter contribution of $51,062 to its defined benefit pension plans. In the second quarter of fiscal 2004, the company contributed an additional $26,841 to those pension plans. The company does not anticipate any additional discretionary contributions to these plans during  fiscal 2005. 2004 Annual Report 27 2004 2003 Liquidity Ratios Current ratio 2.2 1.9 Receivables turnover 16.9 14.8 Days sales in receivables 21.2 25.3 Inventory turnover 8.8 8.4 Days sales in inventory 43.4 46.1 Leverage Ratio Long-term debt (including current maturities) to equity 27.0% 32.7% Operating Ratios Pretax profit to net worth 27.5% 24.4% Pretax profit to total assets 14.8% 12.5%