CHAPTER 10 Statement of Cash Flows 425
Required
a. Prepare the statement of cash flows with a total column for the three-year period.
(Do not include reconciliation of net income to net cash provided by operating
activities).
b. Comment on significant cash flow items in the statement prepared in (a).
c. Prepare the statement of cash flows for the 52 weeks ended January 1, 2011, with
inflows separated from outflows. Present the data in dollars and percentages. Do not
include reconciliation of net income to net cash provided by operating activities.
d. Comment on significant cash flow items on the statement prepared in (c).
CASE 10-3 WEB SITE
424 CHAPTER 10 Statement of Cash Flows
CASE 10-2 CASH FLOW – THE DIRECT METHOD
2009
ARDEN GROUP, INC. AND CONSOLIDATED SUBSIDIARIES*
CONSOLIDATED STATEMENTS OF CASH FLOWS
Fifty-Two Fifty-Two
Fifty-Three
Weeks Ended Weeks Ended Weeks Ended
January 1, January 2, January 3,
(In thousands)
2011
2010
Cash flows from operating activities:
Cash received from customers
$ 417,580 $ 431,108 $ 479,578
Cash paid to suppliers and employees
(384,624) (391,957)
(437,970)
Interest and dividends received
1,580
565
2,513
Interest paid
(94)
(87)
(109)
Income taxes paid
(11,354) (13,895) (15,545)
Net cash provided by operating activities
23,088 25,734 28,467
Cash flows from investing activities:
Capital expenditures
(2,597) (2,890) (5,159)
Purchases of investments
(29,861) (30,164) (25,130)
Sales of investments
51,926 13,127 35,556
Proceeds from the sale of property, plant and
equipment
16
48
21
Net cash provided by (used) in investing activities 19,484 (19,879) 5,288
Cash flows from financing activities:
Cash dividends paid
(3,161) (3,161) (82,188)
Net cash used in financing activities
(3,161) (3,161 (82,188
Net increase (decrease) in cash and cash equivalents 39,411 2,694 (48,433)
Cash and cash equivalents at beginning of year
13,180 10,486 58,919
Cash and cash equivalents at end of year
$ 52,591 $ 13,180 $ 10,486
Reconciliation of Net Income to Net Cash Provided by
Operating Activities:
Net income
$ 18,085 $ 21,624
$ 24,667
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization
5,307 5,599 6,110
Provision for losses on accounts receivable
44
94
169
Deferred income taxes
1,129
108
1,923
Net loss from the disposal of property, plant and
equipment
8
54
89
Realized loss on investments, net
66
0
907
Amortization of premium on investments
960
472
Stock appreciation rights compensation expense
(income)
(394)
(273) 1,823
Changes in assets and liabilities net of effects from
noncash investing and financing activities:
(Increase) decrease in assets:
Accounts and notes receivable
799
(246)
527
Inventories
(1,302)
972
3,712
Other current assets
95
204
(281)
Other assets
27
16
(69)
Increase (decrease) in liabilities:
Accounts payable, trade and other current liabilities: (1,090) (2,402) (9,148)
Federal and state income taxes payable
(237)
668
(608)
Deferred rent
(61)
99
154
Other liabilities
(348) (1,255)
(1,767)
Net cash provided by operating activities
23,088 25,734 28,467
*"The Registrant, Arden Group, Inc. (Company or Arden), is a holding company which conducts operations through its wholly-
owned subsidiary, Arden-Mayfair, Inc. (Arden-Mayfair) and Arden-Mayfair's wholly-owned subsidiary, Gelson's Markets
(Gelson's), which operates supermarkets in Southern California. The Company also owns certain real estate properties through
a subsidiary, Mayfair Realty, Inc. (Mayfair Realty) which is wholly-owned by the Company and Arden-Mayfair. The Company
is a Delaware Corporation organized in 1988." 10-K
Source: ARDEN GROUP, INC. AND CONSOLIDATED SUBSIDIARIES, 2010 10-K
259
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