the arrowbell company is a growing company two years ago it decided to expand in ord 544532

ARROWBELL COMPANY
Sales and Net Income

Year

Sales

Net Income

1998

$2,568,660

$145,800

1999

2,660,455

101,600

2000

2,550,180

52,650

2001

2,625,280

86,800

2002

3,680,650

151,490

ARROWBELL COMPANY
Balance Sheet
December 31, 2002 and 2001

2002

2001

Assets

Current assets:

Cash

$ 250,480

$ 260,155

Accounts receivable (net)

760,950

690,550

Inventories at lower-of-cost-or-market

725,318

628,238

Prepaid expenses

18,555

20,250

Total current assets

1,755,303

1,599,193

Plant and equipment:

Land, buildings, machinery, and equipment

3,150,165

2,646,070

Less: Accumulated depreciation

650,180

525,650

Net plant and equipment

2,499,985

2,120,420

Other assets:

Cash surrender value of life insurance

20,650

18,180

Other

40,660

38,918

Total other assets

61,310

57,098

Total assets

$4,316,598

$3,776,711

Liabilities and Stockholders’ Equity

Current liabilities:

Notes and mortgages payable, current portion

$ 915,180

$ 550,155

Accounts payable and accrued liabilities

1,160,111

851,080

Total current liabilities

2,075,291

1,401,235

Long-term notes and mortgages payable,

less current portion above

550,000

775,659

Total liabilities

2,625,291

2,176,894

Stockholders’ equity:

Capital stock, par value $1.00; authorized,

800,000; issued and outstanding,

600,000 (1997 and 1996)

600,000

600,000

Paid in excess of par

890,000

890,000

Retained earnings

201,307

109,817

Total stockholders’ equity

1,691,307

1,599,817

Total liabilities and stockholders’ equity

$4,316,598

$3,776,711

ARROWBELL COMPANY
Statement of Cash Flows
For Years Ended December 31, 2002 and 2001

2002

2001

Cash flows from operating activities:

Net income

$151,490

$ 86,800

Noncash expenses, revenues, losses,

and gains included in income:

Depreciation

134,755

102,180

Increase in accounts receivable

(70,400)

(10,180)

Increase in inventories

(97,080)

(15,349)

Decrease in prepaid expenses

in 2002, increase in 2001

1,695

(1,058)

Increase in accounts payable

and accrued liabilities

309,031

15,265

Net cash provided by operating activities

429,491

177,658

Cash flows from investing activities:

Proceeds from retirement of

property, plant, and equipment

10,115

3,865

Purchases of property, plant, and equipment

(524,435)

(218,650)

Increase in cash surrender

value of life insurance

(2,470)

(1,848)

Other

(1,742)

(1,630)

Net cash used for investing activities

(518,532)

(218,263)

Cash flows from financing activities:

Retirement of long-term debt

(225,659)

(50,000)

Increase in notes and mortgages payable

365,025

159,155

Cash dividends

(60,000)

(60,000)

Net cash provided by financing activities

79,366

49,155

Net increase (decrease) in cash

$ (9,675)

$ 8,550