Final...John Dawson 4

2 1. 3. 4 EXHIBIT 3 DAWSON STORES, INC. Statements of Cash Flows For the Years Ending January 31 (amounts in thousands) 2007 2008 2009 2010 $355 $328 $ 667 $ 854 329 358 388 37 424 38 Inventories (379) (28) (7) (145) 217 (30) (371) (438) 9 (389) (269) 16 89 157 (10) 30 536 13 54 8 27 830 601 247 262 83 1,485 505 120 (11) 105 1,393 Cash flows from operating activities: Net income Adjustments for differences between net income and cash flows from operating activities: Depreciation and amortization expense Equity in loss of joint venture (Increases) Decreases in current assets: Accounts receivable (net) Supplies and prepaid expenses Increases (decreases) in current liabilities: Accounts payable Accrued liabilities and others Income taxes currently payable Deferred income taxes Cash provided by operations Cash flow for investing activities: Additions to property, plant, and equipment Receipts from disposals of property and equipment Mortgages assumed by purchasers of office properties and prepayment on long-term debt Investments Other (net) Cash used for investing activities Cash flow for financing activities: Proceeds from long-term debt Reductions of long-term debt Cash dividends Cash used for financing activities Increase (decrease) In cash Cash at beginning of the year Cash at end of the year (725) 126 (656) 138 (416) 29 (933) 2871 (168) (209) (103) (17) 64 (655) (27) 81 (632) 80 (516) (102) (46) 29 (765) 218 (452) (187) 229 (119) (116) (6) (125) 232 5107 104 (144) (124) (164) 34 107 $141 97 (353) (145) (401) 568 141 $ 709 (421 207 709 $ 916 Note 5: LONG-TERM DEBT The long-term debt of Dawson Stores, Inc., is composed of mortgage loans from three savings institutions on the store properties that the company occupies. There is no debt agreement that places restrictions on the company's operations or financing Questions 1. 2 Appraise the recent performance and financial position of Dawson Stores, Inc., using selected financial ratios as appropriate. As Stefanie Anderson, would you conclude that the company is a good credit risk? I S W X] hp 2 1. 3. 4 EXHIBIT 3 DAWSON STORES, INC. Statements of Cash Flows For the Years Ending January 31 (amounts in thousands) 2007 2008 2009 2010 $355 $328 $ 667 $ 854 329 358 388 37 424 38 Inventories (379) (28) (7) (145) 217 (30) (371) (438) 9 (389) (269) 16 89 157 (10) 30 536 13 54 8 27 830 601 247 262 83 1,485 505 120 (11) 105 1,393 Cash flows from operating activities: Net income Adjustments for differences between net income and cash flows from operating activities: Depreciation and amortization expense Equity in loss of joint venture (Increases) Decreases in current assets: Accounts receivable (net) Supplies and prepaid expenses Increases (decreases) in current liabilities: Accounts payable Accrued liabilities and others Income taxes currently payable Deferred income taxes Cash provided by operations Cash flow for investing activities: Additions to property, plant, and equipment Receipts from disposals of property and equipment Mortgages assumed by purchasers of office properties and prepayment on long-term debt Investments Other (net) Cash used for investing activities Cash flow for financing activities: Proceeds from long-term debt Reductions of long-term debt Cash dividends Cash used for financing activities Increase (decrease) In cash Cash at beginning of the year Cash at end of the year (725) 126 (656) 138 (416) 29 (933) 2871 (168) (209) (103) (17) 64 (655) (27) 81 (632) 80 (516) (102) (46) 29 (765) 218 (452) (187) 229 (119) (116) (6) (125) 232 5107 104 (144) (124) (164) 34 107 $141 97 (353) (145) (401) 568 141 $ 709 (421 207 709 $ 916 Note 5: LONG-TERM DEBT The long-term debt of Dawson Stores, Inc., is composed of mortgage loans from three savings institutions on the store properties that the company occupies. There is no debt agreement that places restrictions on the company's operations or financing Questions 1. 2 Appraise the recent performance and financial position of Dawson Stores, Inc., using selected financial ratios as appropriate. As Stefanie Anderson, would you conclude that the company is a good credit risk? I S W X] hp