The Szabo Company presented the following data with the 2002 financial statements:

SZABO COMPANY
Statements of Cash Flows
Years Ended December 31, 2002, 2001, and 2000

2002

2001

2000

Increase (Decrease) in Cash:

Cash flows from operating activities:

Cash received from customers

$173,233

$176,446

$158,702

Cash paid to suppliers

and employees

(150,668)

(157,073)

(144,060)

Interest received

132

105

89

Interest paid

(191)

(389)

(777)

Income taxes paid

(6,626)

(4,754)

(845)

Net cash provided by operations

15,880

14,335

13,109

Cash flows from investing

activities:

Capital expenditures

(8,988)

(5,387)

(6,781)

Proceeds from property, plant,

and equipment disposals

1,215

114

123

Net cash used in investing activities

(7,773)

(5,273)

(6,658)

Cash flows from financing

activities:

Net increase (decrease) in

short-term debt

5,100

7,200

Increase in long-term debt

4,100

3,700

5,200

Dividends paid

(6,050)

(8,200)

(8,000)

Purchase of common stock

(8,233)

(3,109)

(70)

Net cash used in financing activities

(10,183)

(2,509)

4,330

Net increase (decrease) in cash

and cash equivalents

(2,076)

6,553

10,781

Cash and cash equivalents at

beginning of year

24,885

18,332

7,551

Cash and cash equivalents at

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

Provision for depreciation

and amortization

12,000

9,700

9,000

Provision for losses on accounts

receivable

170

163

140

Gain on property, plant,

and equipment disposals

(2,000)

(1,120)

(1,500)

Changes in operating assets

and liabilities:

Accounts receivable

(2,000)

(1,750)

(1,600)

Inventories

(3,100)

(2,700)

(2,300)

Other assets

(57)

Accounts payable

5,100

7,200

Accrued income taxes

1,200

Deferred income taxes

2,000

1,700

1,720

Net cash provided by

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).