Question
Please complete cash flow statement using the indirect method for deluxe dining for the current year, using the information in the balance sheet, income statement
Please complete cash flow statement using the indirect method for deluxe dining for the current year, using the information in the balance sheet, income statement and additional information.
Additional Information:
a. All depreciation and amortization are related to net property and equipment.
b. Other assets are associated with cash from investing activities.
c. Other long-term liabilities pertain to cash from financing activities.
d. For Deluxe Dining, the capital expenditure amounts for the current and prior years are ($5,426) and ($8,629) respectively.
e. Deluxe Dining's sale of equipment amounts to $19,386 for the current year and $0 for the prior year.
Exhibit 1: Income Statement for DELUXE DINING CO. (US\$ Thousands) Exhibit 2: Balance Sheet for DELUXE DINING CO. (US\$ Thousands) \begin{tabular}{|c|c|c|c|c|} \hline \multirow{2}{*}{\multicolumn{5}{|c|}{ Two years prior Three years prior }} \\ \hline & & & & \\ \hline Cash and cash equivalents & 636 & 10,537 & 402 & \\ \hline Accounts receivable & 5,087 & 10,723 & 7,621 & \\ \hline Inventories & 5,283 & 5,870 & 9,418 & 9,097 \\ \hline Prepaid expenses and other & 2,129 & 2,928 & 3,535 & \\ \hline Total current assets & 13,135 & 30,058 & 20,976 & \\ \hline Premises and equipment, net & 252,870 & 292,765 & 315,793 & \\ \hline Goodwill, net & - & 34,920 & 72,012 & \\ \hline Deferred income tax benefit & 11,620 & 11,620 & 18,900 & \\ \hline Other assets & 28,670 & 29,193 & 44,000 & \\ \hline Total assets & 306,295 & 398,556 & 471,681 & 656,596 \\ \hline \multicolumn{5}{|l|}{ Liabilities and shareholders' equity } \\ \hline \multicolumn{5}{|l|}{ Current liabilities: } \\ \hline Accounts payable & 11,509 & 15,766 & 16,568 & \\ \hline Accrued liabilities & 54,292 & 64,265 & 64,567 & \\ \hline Income taxes payable & 35,038 & 33,773 & 30,164 & \\ \hline Total current liabilities & 100,839 & 113,804 & 111,299 & \\ \hline Long-term debt & 199,869 & 215,828 & 194,541 & \\ \hline Other long-term liabilities & 2,143 & 3,111 & 5,024 & \\ \hline Total liabilities & 302,851 & 332,743 & 310,864 & \\ \hline \multicolumn{5}{|l|}{ Shareholders' equity (deficit): } \\ \hline Common stock & 405 & 405 & 405 & \\ \hline Additional paid-in capital & 154,637 & 146,139 & 147,809 & \\ \hline Retained earnings (accumulated deficit) & (58,118) & 5,311 & 100,571 & \\ \hline Treasury stock at cost & (93,480) & (86,042) & (87,968) & \\ \hline Total shareholders' equity (deficit) & 3,444 & 65,813 & 160,817 & \\ \hline Total liabilities \& shareholders' equity (deficit) & 306,295 & 398,556 & 471,681 & \\ \hline \end{tabular}Step by Step Solution
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