Problem 11-4 Analyze Mechan Systems Company's statement of cash flows (L.O. 5,6) Mechan Systems Company develops, manufactures, markets, installs and supports a wide range of standards-based LAN and WAN connectivity hardware and software products. The company's statements of cash flow for the years 2010-2012 follow. Then the relevant portion of Managements Discussion and Analysis of the statement of cash flows is provided CONSOLIDATED STATEMENTS OF CASH FLOWS Years Ended February 29, 2012, and February 28, 2011 and 2010 (in thousands) 2012 2011 2010 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities 164,418 161,974 $119,218 Depreciation and amortization Provision for losses on accounts receivable Loss on disposals of property, plant and equipment 32,061 26,832 17,335 72 1,734 113 (38,766) (4434) (6,151) 356 93 174 Deferred taxes Changes in assets and Sabities Accounts receivables (55,101)27,698) (17,707) 50,483) (0) (8,758)