Table 3.1 in Chapter 3 presents financial statements over the period 2014–2017 for R&E Supplies, Inc.

a. Construct a sources and uses statement for the company over this period (one statement for all three years).

b. What insights, if any, does the sources and uses statement give you about the financial position of R&E Supplies?

Table 3.1

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Income Statements 2017 2014 2015 2016 $11,190 $13,764 11,699 $16,104 $20,613 17,727 Net sales Cost of goods sold 9,400 13,688 Gross profit Expenses: General, selling, and administrative expenses Net interest expense 2,065 1,790 2,416 2,886 1,019 1,239 1,610 110 2,267 100 103 90 723 Earnings before tax 671 696 529 302 313 238 Tax 325 Earnings after tax 369 398 383 291 Balance Sheets Assets Current assets: 412 Cash and securities 671 551 644 Accounts receivable 1,343 1,119 1,789 1,376 2,094 2,886 2,267 Inventories 1,932 Prepaid expenses 14 12 15 18 3,147 128 $ 3,275 Total current assets 3,728 4,685 5,583 287 Net fixed assets 124 295 $ 3,852 $ 4,980 $ 5,870 Total assets Llabilitles and Owners' Equity Current liabilities: 2$ 3,212 Bank loan 50 50 50 50 Accounts payable Current portion long-term debt Accrued wages 2,426 1,007 1,443 60 50 50 100 10 18 Total current liabilities 1,122 1,550 910 2,536 3,380 760 Long-term debt 960 860 Common stock 150 150 150 150 Retained earnings 1,043 1,242 1,434 $ 4,980 1,580 $ 3,275 $ 3,852 $ 5,870 Total liabilities and owners' equity %24 %24