ACCT499 Case 2-7 Outline ACCT499 Case 2-7 Outline | Page 2

textiles. An aggressive advertising campaign initiated in late 2012 seemed to bear fruit for the
company. Unfortunately, the increased level of production put pressure on the machines and the
degree of breakdown was increasing. A big problem was that the motors wore out prematurely.
EXHIBIT 1
MILTON MANUFACTURING COMPANY
Summary of Cash Flows
For the Years Ended December 31, 2012 and 20011 (000 omitted)
December 31,
2012
Cash Flows from Operating Activities