Springfield National Bank

Essay text:

Evaluation and the supports of conclusion are provided below. 1. THE STATEMENT OF CASH FLOWS To figure out the recent performance and financial position of the company and to make a conclusion about the credit risk, Comparative Statement of Cash Flows prepared based upon Comparative Balance Sheet and Statement of Income is below: OPERATING ACTIVITIES Cash Provided ($) 1981 Cash Provided ($) 1982 Cash Provided ($) 1983 Net income 25,183 51,317 65,663 Adjustments Depreciation 29,611 10,555 17,054 Due changes in working capital Increase/Decrease in A/R (11,161) (28,563) (29,896) Increase/Decrease in Inventories 16,717 (33,720) (20,693) Increase/Decrease in Supplies & Prepaid Expenses (2,278) 665 1,260 Increase/Decrease in A/P 955 46,256 38,885 Increase/Decrease in Taxes other Than Income Taxes 801 1,934 255 Increase/Decrease in Accrued Liabilities 3,370 17,080 8,934 Increase/Decrease in Income Taxes Currently payable 573 20,172 (817) Increase/Decrease in Deferred Income Taxes, Installment Sales 2,097 6,321 8,095 Increase/Decrease in Current Portion of Long Term Debts 1,895 2,940 (3,139) Net Cash provided by operating Activities 67,763 94,957 85,601 INVESTING ACTIVITIES Increase/Decrease in Investment and Other Assets (2,350) 12,017 (3,060) Increase/Decrease in Property, Plant, and Equipment (20,654) (15,348) (24,779) Depreciation (29,611) (10,555) (17,054) Net Cash provided by Investing Activities (52,615) (13,886) (44,893) FINANCING ACTIVITIES Increase/Decrease in Long Term Debt (4,949) (22,611) (14,882) Increase/Decrease in Deferred Credits 2,016 (3,710) 4,492 Increase/Decrease in Payment of Dividends (9,619) (11,032) (14,348) Net Cash provided by Financing Activities (12,552) (37,353) (24,738) SUMMARY Net Change In Cash 2,596 43,718 15,970 Cash at The Beginning Of Year 8,212 10,808 54,526 Cash at The End Of Year 10,808 54,526 70,496 2...