Part A and Part D

CHAPTER 10 Forecasting Financial Statele Exhibit 10.20 Massachusetts Stove Company Statements of Cash Flows (Case 10.2) Year Ended December 31: Year 3 Year 4 Year 5 Year 6 Year 7 33.166 $ 1541 2,321 $ 91,070 $107,875 $ 145,246 $133,166 56,557 73416 64,320 66,829 27 483 32,500 49,300 17,660 (44,135) 25,772 (10,814) 10,759 (76,515) (20,256) (27,375) (34,415) 1,368 (24,289) (69,586) 16,807 (20,866) 60,558 84,106 5,538 54,509 13,011 $ 92,097 $233,827 $ 243,022 $227,642 $ 231,437 24962 (43036 OPERATIONS Net income Depreciation and amortization Other addbacks (Increase) Decrease in receivables (Increase) Decrease in inventories Decrease in other current assets Increase (Decrease) in payables Increase in other current liabilities Cash Flow from Operations INVESTING Capital expenditures Cash Flow from Investing FINANCING Increase in long-term debt Decrease in short-term debt Decrease in long-term debt Acquisition of common stock Cash Flow from Financing Change in Cash CashBeginning of year Cash-End of Year $(92,649) $ (16,078) $ (19,249) S (50,620) $ (22,929 S092.649) $(16,078) $ (19,249) $ (50,620) $ (22921 $ 10,000 $ - $ - $ - $ - (13,000) (12,000) (27,555) (79,506) (190,320) (23,257) (115,076) (75,000) S(30,555) $ (91,506) $(265,320) $ (23,257) $(115,076 $(31,107) $126,243 $ (41,547) $153,765 $ 93,440 50,794 19,687 145,930 104,383 258,148 $ 19,687 $145,930 $ 104,383 $258,148 $ 351,588 of the pricing pressure that * entry costs and high risks male Woodstove producer that has not developed gas products 100% of its sales currere from woodstove sales. MSC is the only woodstove producer that sells by mail order o consumers. The mail-order market has sheltered MSC from some of the pricing pres other manufacturers have had to bear. The combination of high entry costs and 9 it unlikely that another competitor will enter the mail-order niche. MSC's other competitive advantages are the high efficiency and unique le Woodstoves. MSC equips its Woodstoves with a catalytic combuster, which reo ted from burning wood. This reburning not only increases the heat generated but also reduces pollutants in the air. MSC offers a woodstove with inlaid soap stone heats up and provides warmth even after the fire in the stove has dainos stone also adds to the attractiveness of the stove as a piece of furniture. My indudes many middle and upper-income individuals. unique features of o hich rebums gases en at generated by the stones halid soupstone. This op nas dwindled. The sop MSCs customer base