The consolidated balance sheets for the Hoffmeister Lumber Company at the beginning and end of 2015 follow. The company bought $50 million worth of fixed assets. The charge for depreciation in 2015 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.
b. Prepare a statement of cash flows.
c. Briefly summarize your findings.
Hoffmeister Lumber Company: Balance Sheets at Beginning and End of 2015 (Millions of Dollars)
|
|
Change
|
|
|
Jan-01
|
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
|
5211
|
|
|
|
Note: Total sources must equal total uses.
|
|
|
|
|