The Szabo Company presented the following data with the 2002 financial statements:

SZABO COMPANY Statements of Cash Flows Years Ended December 31, 2002, 2001, and 2000 2002 2001 2000 Increase (Decrease) in Cash:

Cash flows from operating activities:

Cash received from customers $173,233 $176,446 $158,702 Cash paid to suppliers and employees (150,668) (157,073) (144,060)

Interest received 132 105 89 Interest paid (191) (389) (777)

Income taxes paid (6,626) (4,754) (845)

Net cash provided by operations 15,880 14,335 13,109 Cash flows from investing activities:

Capital expenditures (8,988) (5,387) (6,781)

Proceeds from property, plant, and equipment disposals 1,215 114 123 Net cash used in investing activities (7,773) (5,273) (6,658)

Cash flows from financing activities:

Net increase (decrease) in short-term debt — 5,100 7,200 Increase in long-term debt 4,100 3,700 5,200 Dividends paid (6,050) (8,200) (8,000)

Purchase of common stock (8,233) (3,109) (70)

Net cash used in financing activities (10,183) (2,509) 4,330 Net increase (decrease) in cash and cash equivalents (2,076) 6,553 10,781 Cash and cash equivalents at beginning of year 24,885 18,332 7,551 Cash and cash equivalents at end of year $ 22,809 $ 24,885 $ 18,332 Reconciliation of Net Income to Net Cash Provided by Operating Activities 2002 2001 2000 Net income $ 7,610 $ 3,242 $ 506 Provision for depreciation and amortization 12,000 9,700 9,000 Provision for losses on accounts receivable 170 163 140 Gain on property, plant, and equipment disposals (2,000) (1,120) (1,500)

Changes in operating assets and liabilities:

Accounts receivable (2,000) (1,750) (1,600)

Inventories (3,100) (2,700) (2,300)

Other assets — — (57)

Accounts payable — 5,100 7,200 Accrued income taxes 1,200 — —

Deferred income taxes 2,000 1,700 1,720 Net cash provided by operating activities $15,880 $14,335 $13,109 Required

a. Prepare a statement of cash flows with a three-year total column for 2000–2002.

b. Comment on significant trends you detect in the statement prepared in (a).

c. Prepare a statement of cash flows, with inflow/outflow for the year ended December 31, 2002.

d. Comment on significant trends you detect in the statement prepared in (c).