Szabo Company presented the following data with its 2011 financial statements: Reconciliation of Net Income to Net
Question:
Reconciliation of Net Income to Net Cash Provided by Operating Activities
Required
a. Prepare a statement of cash flows with a three- year total column for 2009 2011.
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, 2011.
d. Comment on significant trends you detect in the statement prepared in(c).
Transcribed Image Text:
DONNA SZABO COMPANY Statements of Cash Flows For Years Ended December 31, 201, 2010, and 2009 2011 2010 2009 Increase (decrease) in cash: Cash flows from operating activities Cash received from customers Cash paid to suppliers and employees Interest received S 173,233 S 176,446 158,702 (150,668) (157,073) 144,060) 105 (389) (4,754) 15,88014,335 89 (777) (845) 13,109 132 (191) Interest paicd Income taxes paid Net cash provided by operations Cash flows from investing activities Capital expenditures Proceeds from property, plant, and equipment disposals (8,988 (5,387 6,781) 123 1,215 114 Net cash used in investing activities Cash flows from financing activities 7.773) (5,273) (6,658) Net increase (decrease) in short-term debt Increase in long-term debt Dividends paid Purchase of common stock 5,100 3,700 7,200 Net cash used in financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year (6,050 (8,200) (8,000) (70 10,183 (2,509) 4,330 6,55310,781 24,885 18,332 7,551 22,809 24,885 18,332 4,100 (8,233 (3,109) (2,076) 2011 2010 2009 Net income Provision for depreciation and amorti Provision for losses on accounts receivable Gain on property, plant, and equipment 7,610 3,242 506 9,700 163 12,000 9,000 140 zation 170 (2,000) (2,000) disposals ,1201,500) Changes in operating assets and liabilities: Accounts receivable Inventories Other assets Accounts payable Accrued income taxes Deferred income taxes (1,750) (1,600) (2,300) (57) 7,200 (3,100) (2,700) 5,100 1,700 1,200 2,000 $15,880 1,720 S14,335 $13,109 Net cash provided by operating activities
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Related Book For
Financial Reporting and Analysis Using Financial Accounting Information
ISBN: 978-1133188797
13th edition
Authors: Charles H. Gibson
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