The statement of cash flows for Baldwin Company shows what happens in the Cash account during the year. It can be seen as a summary of the sources and uses of cash (sources of cash are added, uses of cash are subtracted). Please answer which of the following is true if Baldwin repurchases some of its common stock:

Select: 1

	It is a use of cash, and will be shown in the investing section as a subtraction.
	It is a source of cash, and will be shown in the investing section as an addition.
	It is a use of cash, and will be shown in the financing section as a subtraction.
	It is a source of cash and will be shown in the financing section as an addition

To eport C59559 Baldwin Balance Sheet EFINITIONS Common Size: The common size column mply represents each item as a percentage of total assets or that year Your cash position ccounts Receivable: Reflects the lag between delivery Cash $49,202 $12,231 nd payment of your products. Inventories: The current Accounts Receivable nventory $5,668 alue of your inventory across all products, Azero indicates your company stocked out. Unmet demand would, of course, all to your competitors. Plant & Equipmen The curren otal Current Assets $67,101 Accum Deprec: The total accumulated Plant & Equipment $219,700 $77,751) mpany currently owes suppliers for materials and Accumulated Depreciation ervices o pay during the next year of operations. include otal Fixed Assets $141,949 mergency loans used to keep your company solvent should ong Term Debt: The $209,050 otal Assets epresents the total value of your bonds. Common Stock: LIABILITIES & OWNERS' EQUITY he amount of capital invested by shareholders in the company. Retained Earnings: The profits that the company Accounts Payable $8,019 hose to keep instead of paying to shareholders as urrent Deb $42,632 dends Long Term Debt $87,282 Total Liabilities $137,933 Common Stock $37,058 $34,059 Retained Earnings Total Equity $71,117 $209,050 Total Liab. & O. Equity Cash Flow Statement om Operating Activities as OWS he aS OW ment examines what happened in the Cash Account d uring the Net Income (Loss ear. Cash injections appear as positive numbers and cash withdrawals as negative umbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans. raordinary gains/losses/writeoff hen negative cash flows exceed positives, you are forced to seek emergency funding Accounts Payable or example, if sales are bad and you find yourself carrying an abundance of excess nven nventory, the report would show the increase in inventory as a huge negative cash flow. oo much un expected inventory could outstrip your inflows, exhaust your starting cash and Accounts Receivable orce you to beg for money to keep your company afloat Net cash from operations Cash Flows from Investing Activities: Cash Flow Summary Plant Improvements Cash Flows from Financing Activities: Baldwin Dividends Paid Sales of Common Stock Purchase of Common Stock Cash from long term debt 40.000 Retirement of long term debt Change in current debt net 20,000 Net cash from financing activities Net change in cash posi On Closing cash position 20.000 -40.000 Operations Finance Chg. Cash nvestment O Finance Operations O Chg. Cash nnual Report Common Size 23.5% $30.97 5.9% $12,964 $7.58 2.7% 32.1% $51,516 105.1% $177,560 $63,104 -37.2% 67.9% $114,456 $165,972 100.0% 3.8% $8.769 20.4% $25.256 $68,195 41.8% 66.0% $102,220 $27,549 $36,203 16.3% 34.0% $63,752 $165,972 100.0% 016 $2,14 $6,107 $14,647 $11,837 $0 ($750 $1,570 $1,913 $2,563 $733 $2,126 $14,398 $19,952 ($42,140) $34,660 $0 $9.509 $2,874 $0 $30,387 $14,273 $0 $4,019 $45,973 $13,129 $18,231 $1,580 $49,202 $30,971 Page 1