The past year was a profitable year even though it is not reflected on our

The past year was a profitable year even though it is

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The past year was a profitable year, even though it is not reflected on our statement of cash flows and our final net cash. This past year we have purchased both a building and land that we paid for mainly in cash. Future years wont require such a heavy investment and will will be much more solvent .
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PEORIA CORP.STATEMENT OF CASH FLOWSFOR THE YEAR ENDED DECEMBER 31, 2012Cash Flows from Operating ActivitiesNet income$225,000 Adjustments to reconcile net income to netCash provided by operating activities:Depreciation expense$50,000 Increase in accounts receivable($50,000)Increase in inventory($30,000)Decrease in prepayments$10,000 Decrease in accounts payable($18,000)Increase in other accrued liabilities$5,000 Decrease in income taxes payable($20,000)Net cash provided by operating activities $172,000 Cash Flows from Investing ActivitiesAcquisition of land($150,000)Acquisition of plant and equipment($200,000)Net cash used by investing activities($350,000)Cash Flows from Financing ActivitiesAdditional long-term borrowings$50,000 Issuance of common stock$150,000 Cash dividends paid($60,000)Net cash provided by financing activities$140,000 Net decrease in cash($38,000)Cash balance, December 31, 2011$90,000 Cash balance, December 31, 2012$52,000 2Mr President, The past year was a profitable year, even though it is not reflected on our statement of cash flows and our final net cash. This past year we have purchased both a building and land that we paid for mainly in cash. Future years wont require such a heavy investment and will will be much more solvent .
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