The purpose of this problem is to familiarize you with the statement of cash flows of a publicly held company. Its primary objective is to test your understanding of the relationships underlying the cash flow statement. It also serves as a natural way to expand your understanding of accounting terminology. This is an important feature because the financial statements of publicly held companies often use terms that are different from those appearing in financial accounting textbooks.
The information that follows was taken from Snap-On-Tools Corporation’s Year 2 statement of cash flows. Snap-On-Tools makes and sells hand tools for mechanics, tool storage units, and related items. Most of the company’s sales come from dealers who visit customer locations with their walk-in vans.

Required:
Use the information provided here to solve for the missing values, and recast Snap-On-Tools’s Year 2 statement of cash flows in proper form. (Note: The item “Effect of exchange rate changes”
captures gains or losses that arise when a firm converts its foreign subsidiaries’ financial statements from the respective currencies [for example, French francs] into U.S. dollars.) In Snap-
On’s case, these translations were not favorable in Year 2. While the amount of this item reflects events and transactions affecting various items in the statement of cash flows, it is not separately identified with any individual section of the statement. Rather, it is treated as an adjustment to aggregate net cash flows to arrive at the change in cash. This adjustment usually appears near the bottom of the statement of cash flows.

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($ in thousands) Cash and cash equivalents at beginning of year Increase in notes payable Decrease in deferred income taxes Decrease in accounts payable Net cash provided by operating activities Capital expenditures $ 10,930 52,503 6,005 8,202 21,081 Depreciation 25,484 Acquisition of Sun Electric, net of cash acquired 110,719 Increase in receivables 5,458 Net cash used in investing activities ? Payment of long-term debt 8,332 Increase in other noncurrent assets 3,609 Decrease in inventories 5,928 Proceeds from stock option plans 4,940 Net earnings 65,975 Increase in accruals, deposits, and other liabilities 23,330 Cash dividends paid 45,718 Increase in long-term debt 78,650 Net cash provided by (used in) financing activities ? Effect of exchange rate changes 1,916 Increase in cash and cash equivalents ? Disposal of property and equipment 3,379 Cash and cash equivalents at end of year Amortization 3,973 Increase in prepaid expenses 4,829 Gain on sale of assets 250