CASE 10-2 CASH FLOW -- THE DIRECT METHOD
|
ARDEN GROUP, INC. AND CONSOLIDATED SUBSIDIARIES*
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In thousands)
|
Fifty-Two Weeks Ended January 1, 2011
|
Fifty-Two Weeks Ended January 2, 2010
|
Fifty-Three Weeks Ended January 3, 2009
|
|
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
|
|
Saks 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
|
259
|
|
Stock appreciation rights compensation experiance(income)
|
394
|
273
|
1,823
|
|
Changes in assets and liabilities net of effect 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:
|
9,148
|
|
Accounts payable, trade and other current liabilities:
|
1,090
|
2,402
|
|
|
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.me Company is a Delaware Corporation organized in 1988." 10-K
Source: ARDEN GROUP, INC. AND CONSOLIDATED SUBSIDIARIES, 2010 10-K
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).