Analysis of Cash Flow Statement Buckle Corporation reported the following cash flows for the year 2000:

a. Did Buckle Corporation increase or decrease its cash balance during the year? How much cash was generated from operations during the year?

b. Does Buckle Corporation appear to be expanding or contracting its operations? Explain your answer.

c. Should creditors be concerned that the total of dividends paid and common stock repurchased during the year was substantially greater than the cash generated by operations? Explain.

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Buckle Corporation Statement of Cash Flows Year Ended December 31, 2000 Operating activities Cash received from customers Cash paid to suppliers Cash paid for salaries and wages Interest payments on bank loans Cash generated from operations Investing activities Sale of land Sale of buildings and equipment Purchase of new equipment Cash generated from investing activities $ 800,000 $500,000 190,000 (690,000) $110,000 (43,000) $ 67,000 $ 90,000 310,000 (40,000) 360,000 Financing activities Repayment of bank loans Repurchase of common stock Dividends paid to shareholders $250,000 100,000 84,000