Statement of cash flows The consolidated balance sheets for the Hoffmeister

    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.

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