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18) In its 2021 Annual Report to Shareholders, Kinney Inc. reported the following Consolidated Statement of Cash Flows: For the years ended December 31, 2021
18) In its 2021 Annual Report to Shareholders, Kinney Inc. reported the following Consolidated Statement of Cash Flows: For the years ended December 31,
2021 | 2020 | |||||||
Cash flow from operating activities: | ||||||||
Cash received from customers | $ | 197,822,040 | $ | 211,673,952 | ||||
Cash paid to suppliers and employees | (191,176,791 | ) | (200,374,336 | ) | ||||
Interest paid, net | (1,513,990 | ) | (2,048,523 | ) | ||||
Income taxes paid | (416,650 | ) | (552,250 | ) | ||||
Cash provided by operations | 4,714,609 | 8,698,843 | ||||||
Cash flow from investing activities: | ||||||||
Capital expenditures and acquisitions | (2,953,579 | ) | (1,617,382 | ) | ||||
Expenditures for other assets | (44,560 | ) | (138,420 | ) | ||||
Cash used in investing activities | (2,998,139 | ) | (1,755,802 | ) | ||||
Cash flow from financing activities: | ||||||||
Principal payments of long-term debt and lease agreements | (2,112,485 | ) | (6,460,175 | ) | ||||
Addition to long-term debt and lease liability | 3,068,378 | 1,444,847 | ||||||
Purchase of common stock and other capital transactions | (1,615,906 | ) | (913,231 | ) | ||||
Payment of dividends | (865,558 | ) | (1,026,968 | ) | ||||
Cash provided by (used in) financing activities | (1,525,571 | ) | (6,955,527 | ) | ||||
Net increase (decrease) in cash | 190,899 | (12,486 | ) | |||||
Cash at beginning of year | 192,615 | 205,101 | ||||||
Cash at end of year | $ | 383,514 | $ | 192,615 | ||||
2021 | 2020 | |||||||
Reconciliation of net income to net cash provided by operations: | ||||||||
Net income | $ | 1,755,933 | $ | 2,408,517 | ||||
Depreciation and amortization | 3,515,504 | 3,535,087 | ||||||
Deferred income taxes | 206,000 | 345,766 | ||||||
Changes in assets and liabilities, net of acquisitions: | ||||||||
Decrease (increase) in receivables | (2,907,353 | ) | 4,130,668 | |||||
Decrease (increase) in inventories | (356,508 | ) | 6,042,490 | |||||
Increase (decrease) in prepaid expenses | 362,648 | (94,850 | ) | |||||
Increase (decrease) in controlled disbursements | 374,394 | 84,718 | ||||||
Increase (decrease) in accounts payable | 1,778,676 | (8,174,148 | ) | |||||
Increase (decrease) in accrued expenses | (14,685 | ) | 418,616 | |||||
Other, net | 1,979 | |||||||
Cash provided by operations | $ | 4,714,609 | $ | 8,698,843 | ||||
Required: Kinney reported cost of goods sold of $168,214,150 in its fiscal 2021 income statement. Compute Kinneys net inventory purchases during the year.
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