CASH FLOW—THE DIRECT METHOD
ARDEN GROUP, INC., AND CONSOLIDATED SUBSIDIARIES* CONSOLIDATED STATEMENTS OF CASH FLOWS
Fifty-Three Weeks Ended January 3, 2009
Fifty-Two Weeks Ended December 29, 2007
Fifty-Two Weeks Ended December 30, 2006
(In thousands)
Cash flows from operating activities:
Cash received from customers
$479,578
$485,819
$482,645
Cash paid to suppliers and employees
437,970
438,044
440,735
Interest and dividends received
2,513
3,186
2,580
Interest paid
109
99
125
Income taxes paid
15,545
20,660
17,645
Net cash provided by operating activities
28,467
30,202
26,720
Cash flows from investing activities:
Capital expenditures
5,159
3,824
4,868
Purchases of investments
25,130
945
827
Sales of investments
35,556
2
2,751
Proceeds from the sale of property, plant and equipment
21
28
215
Net cash provided by (used) in investing activities
5,288
4,739
2,279
Cash flows from financing activities:
Purchase and retirement of Company stock
0
19,999
Principal payments under capital lease obligations
225
221
Cash dividends paid
82,188
3,161
3,267
Net cash used in financing activities
3,386
23,487
Net increase (decrease) in cash and cash equivalents
48,433
22,077
504
Cash and cash equivalents at beginning of year
58,919
36,842
36,338
Cash and cash equivalents at end of year
$10,486
$58,919
$36,842
Required
a. Prepare the statement of cash flows, with a total column for the three-year period. (Do not include reconciliation).
b. Comment on significant cash flow items in the statement prepared in (a).
c. Prepare the statement of cash flows for 2009, with inflows separated from outflows. Present the data in dollars and percentages. Do not include reconciliation of net income to net cash provided by operating activities.
d. Comment on significant cash flow items on the statement prepared in (c).