Question

STATEMENT OF CASH FLOWS The Crew, Inc. Consolidated Balance Sheets (in thousands) Dec. 31, Year 2 Dec. 31, Year 1 ASSETS Current assets: Cash and cash equivalents $ 92,069 $ 72,634 Accounts receivables, net 55,947 75,492 Inventories 50,784 53,129 Prepaid expenses 12,112 13,057 Total current assets 210,912 214,312 Equipment 145,444 134,312 Less: Accumulated depreciation (50,515) (36,689) Total assets $305,841 $311,935 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 25,466 $ 34,879 Accrued liabilities 40,574 40,722 Total current liabilities 66,040 75,601 Long-term debt 10,422 10,206 Stockholders’ equity: Contributed capital 1,662 1,284 Retained earnings 227,717 224,844 Total stockholders’ equity 229,379 226,128 Total liabilities and stockholders’ equity $305,841 $311,935 Consolidated Statement of Income Year 2 Net sales $130,896 Cost of sales 74,040 Gross profit 56,856 Operating expenses: Selling, general & administrative expenses 33,211 Depreciation expense 13,826 Total operating expenses 47,037 Operating income 9,819 Interest income 239 Income before income taxes 10,058 Income tax expense 3,621 Net income $ 6,437

Answer 1

	Statement of Cash Flows
	For the Year Ended December 31
Cash Flows from Operating Activities:
Net income		6437
Adjustments to reconcile net income to
Net cash provided by operating activities
Depreciation expense	13826
Decrease in Accounts receivable	19545
Decrease in inventory	2345
Decrease in Prepaid expenses	945
Decrease in accounts payable	-9413
Decrease in accrued liabilities	-148
		27100
Net cash provided by operating activities		33537
Cash Flows from Investing Activities:
Purchase of Equipment	-11132
Net Cash used by Investing Activities		-11132
Cash Flows from Financing Activities
Payment of Cash Dividends	-3564
Proceeds from Long-term debt	216
Issuance of Capital Stock	378
Net Cash Used by Financing Activities		-2970
Net Increase in Cash		19435
Cash at Beginning of Period		72634
Cash at End of Period		92069