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China Medicine Announces Record Fourth Quarter and 2008 Results
Date:3/26/2009

Accumulated other comprehensive income 4,428,294 2,122,795 Total shareholders' equity 42,766,261 30,884,183 Total liabilities and shareholders' equity $44,681,316 $32,640,238 CHINA MEDICINE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007 2008 2007 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $9,125,616 $6,875,369 Adjustments to reconcile net income to cash used in operating activities: Minority interest (118,266) (94,658) Depreciation and amortization 420,769 303,957 Bad debt expenses 36,428 18,495 Loss on sale of assets 9,416 -- stock based compensation 88,463 333,870 Amortization of deferred expenses -- 325,687 Change in operating assets and liabilities Notes receivable (590,466) -- Accounts receivable, trade (4,786,654) (5,879,829) Inventories (491,874) (1,840,170) Advances to suppliers 461,695 (2,535,589) Other current assets (105,081) (34,728) Accounts payable, trade (20,683) (120,129) Other payables - related parties -- (30,000) Other payables and accrued liabilities (24,555) 45,119 Customer deposits
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