The Szabo Company presented the following data with the 2002 financial statements:
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SZABO COMPANY |
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2002 |
2001 |
2000 |
|
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Increase (Decrease) in Cash: |
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Cash flows from operating activities: |
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Cash received from customers |
$173,233 |
$176,446 |
$158,702 |
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Cash paid to suppliers |
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and employees |
(150,668) |
(157,073) |
(144,060) |
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Interest received |
132 |
105 |
89 |
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Interest paid |
(191) |
(389) |
(777) |
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Income taxes paid |
(6,626) |
(4,754) |
(845) |
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Net cash provided by operations |
15,880 |
14,335 |
13,109 |
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Cash flows from investing |
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activities: |
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Capital expenditures |
(8,988) |
(5,387) |
(6,781) |
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Proceeds from property, plant, |
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and equipment disposals |
1,215 |
114 |
123 |
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Net cash used in investing activities |
(7,773) |
(5,273) |
(6,658) |
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Cash flows from financing |
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activities: |
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Net increase (decrease) in |
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short-term debt |
— |
5,100 |
7,200 |
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Increase in long-term debt |
4,100 |
3,700 |
5,200 |
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Dividends paid |
(6,050) |
(8,200) |
(8,000) |
|
Purchase of common stock |
(8,233) |
(3,109) |
(70) |
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Net cash used in financing activities |
(10,183) |
(2,509) |
4,330 |
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Net increase (decrease) in cash |
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and cash equivalents |
(2,076) |
6,553 |
10,781 |
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Cash and cash equivalents at |
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beginning of year |
24,885 |
18,332 |
7,551 |
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Cash and cash equivalents at |
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end of year |
$ 22,809 |
$ 24,885 |
$ 18,332 |
Reconciliation of Net Income to Net Cash Provided by Operating Activities
|
2002 |
2001 |
2000 |
|
|
Net income |
$ 7,610 |
$ 3,242 |
$ 506 |
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Provision for depreciation |
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and amortization |
12,000 |
9,700 |
9,000 |
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Provision for losses on accounts |
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receivable |
170 |
163 |
140 |
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Gain on property, plant, |
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and equipment disposals |
(2,000) |
(1,120) |
(1,500) |
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Changes in operating assets |
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and liabilities: |
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Accounts receivable |
(2,000) |
(1,750) |
(1,600) |
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Inventories |
(3,100) |
(2,700) |
(2,300) |
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Other assets |
— |
— |
(57) |
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Accounts payable |
— |
5,100 |
7,200 |
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Accrued income taxes |
1,200 |
— |
— |
|
Deferred income taxes |
2,000 |
1,700 |
1,720 |
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Net cash provided by |
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operating activities |
$15,880 |
$14,335 |
$13,109 |
Required a. Prepare a statement of cash flows with a three-year total column for 2000–2002.
b. Comment on significant trends you detect in the statement prepared in (a).
c. Prepare a statement of cash flows, with inflow/outflow for the year ended December 31, 2002.
d. Comment on significant trends you detect in the statement prepared in (c).