Statement of cash flows
The consolidated balance sheets for the Hoffmeister Lumber Company at the beginning and end of 2012 follow. The company bought $50 million worth of fixed
assets. The charge for depreciation in 2012 was $10 million. Net income was $33 million and the company paid out $5 million in dividends.
a. Fill in the amount of the source or use in the appropriate column.
Hoffmeister Lumber Company: Balance Sheets at Beginning and End of 2012 (Millions of Dollars)
Change
Jan 1
Dec 31
Source
Use
Cash
7
15
Marketable Securities
0
11
Net Receivables
30
22
Inventories
53
75
Total current assets
90
123
Gross fixed assets
75
125
Less accumulated depreciation
25
35
Net fixed assets
50
90
Total Assets
140
213
Accounts payable
18
15
Notes payable
3
15
Other current liabilities
15
7
Long-term debt
8
24
Common stock
29
57
Retained earnings
67
95
Total Liabilities and equity
$140
$213
Note: Total sources must equal total uses.
b. Prepare a statement of cash flows.
c. Briefly summarize your findings.