iolden Enterprises is a holding company which owns all of the issued and outstanding capital stock of Golden Flake Snack Foods, which is a premiere producers, marketer, and istributor of snack products in the Southeaster U.S. since 1923. Their products include potato chips, tortilla chips, fried pork skins, baked cheese curls, onion rings, pretzels, and heese crackers. leview the supplemental information for this case before proceeding. nalysis of 2012 and 2013 Financial Statements (Form 10-K) a. Refer to the company's statements of cash flows for 2012 and 2013. Has Golden Enterprises maintained its productive capacity, expanded it, or decreased it over the last three years? Explain. [Hint: In this context, productive capacity refers to the company's ability to contribute to sales growth through continued investments in property, plant, and equipment. One way to measure a company's investment is to compare depreciation with acquisition of PPE which will help explain whether the company is replacing its equipment at the same rate that it is being used up (if so, then a company is maintaining it's current growth). Two key figures to help to perform this analysis are found on the statement of cash flows, specifically the "depreciation and amortization charges relating to PPE" in the operating section and "acquisition of PPE" on the investment section. If depreciation is exceeding the new acquisition costs, it is an indication that the company is lagging in expanding its production capacity. If depreciation is less than the acquisition costs, then this is an indicator that either 1) the company is expanding its productive capacity or 2) the cost of replacing machines is higher due to inflation.] GOLDEN ENTERPRISES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASHFLOWS For the Fiscal Years Ended May 31, 2013 and June 1, 2012 GOLDEN ENTERPRISES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASHFLOWS For the Fiscal Years Ended May 31, 2013 and June 1, 2012 RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES GOLDEN ENTERPRISES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASHFLOWS For the Fiscal Years Ended June 1, 2012 and June 3, 2011 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (827,822)1,277,837 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR \( \stackrel{\$ 1,893,816}{\$} \stackrel{\$ 2,721,638}{\hline} \) GOLDEN ENTERPRISES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASHFLOWS For the Fiscal Years Ended June 1,2012 and June 3, 2011 iolden Enterprises is a holding company which owns all of the issued and outstanding capital stock of Golden Flake Snack Foods, which is a premiere producers, marketer, and istributor of snack products in the Southeaster U.S. since 1923. Their products include potato chips, tortilla chips, fried pork skins, baked cheese curls, onion rings, pretzels, and heese crackers. leview the supplemental information for this case before proceeding. nalysis of 2012 and 2013 Financial Statements (Form 10-K) a. Refer to the company's statements of cash flows for 2012 and 2013. Has Golden Enterprises maintained its productive capacity, expanded it, or decreased it over the last three years? Explain. [Hint: In this context, productive capacity refers to the company's ability to contribute to sales growth through continued investments in property, plant, and equipment. One way to measure a company's investment is to compare depreciation with acquisition of PPE which will help explain whether the company is replacing its equipment at the same rate that it is being used up (if so, then a company is maintaining it's current growth). Two key figures to help to perform this analysis are found on the statement of cash flows, specifically the "depreciation and amortization charges relating to PPE" in the operating section and "acquisition of PPE" on the investment section. If depreciation is exceeding the new acquisition costs, it is an indication that the company is lagging in expanding its production capacity. If depreciation is less than the acquisition costs, then this is an indicator that either 1) the company is expanding its productive capacity or 2) the cost of replacing machines is higher due to inflation.] GOLDEN ENTERPRISES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASHFLOWS For the Fiscal Years Ended May 31, 2013 and June 1, 2012 GOLDEN ENTERPRISES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASHFLOWS For the Fiscal Years Ended May 31, 2013 and June 1, 2012 RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES GOLDEN ENTERPRISES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASHFLOWS For the Fiscal Years Ended June 1, 2012 and June 3, 2011 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (827,822)1,277,837 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR \( \stackrel{\$ 1,893,816}{\$} \stackrel{\$ 2,721,638}{\hline} \) GOLDEN ENTERPRISES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASHFLOWS For the Fiscal Years Ended June 1,2012 and June 3, 2011