1. Analyze the statement of cash flow for candy Corporation.

Candy Corporation.

Statement Of Cash Flows

For The Years Ended December 31, 2009 And 2010

2009($) 2010($)

Net income 1 200 (1500)

Adjustments to reconcile net income to net cash provided

by (used for) operating activities:

Depreciation 550 660

Changes in assets and liabilities :

Accounts receivable (1500) 2100

Inventory (220) (20)

Accounts Payable 1300 (2500)

Accrued Expenses (20) (330)

Net cash provided by (used for) operating activities 1310 1590

Cash flows from investing activities:

Additions to property, plant and equipment (440) (300)

Cash flows from financial activities:

Proceeds from long - term debt 500 700

Repayments of long term debt (400) -

Payment of cash dividends (25) (45)

Net cash provided by financial activities 75 655

Net increase (decrease) in cash 945 (1235)

Cash at beginning of period 1765 3000

Cash at end of period 2710 1765