Question: 6. Table 3.1 in Chapter 3 presents financial statements over the period 20112014 for R&E Supplies, Inc. a. Construct a sources and uses statement for

6. Table 3.1 in Chapter 3 presents financial statements over the period 20112014 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?

Income Statement
2011 2012 2013 2014
Net sales 11,190 13,764 16,104 20,613
Costs of goods sold 9,400 11,699 13,688 17,727
Gross profit 1,790 2,065 2,416 2,886
Expenses:
General, selling and admin expenses 1,019 1,239 1,610 2,267
Net interest expense 100 103 110 90
Earnings before tax 671 723 696 529
Tax 302 325 313 238
Earnings after tax 369 398 383 291
Balance Sheet
Assets
Current assets:
Cash and securities 671 551 644 412
Accounts receivable 1343 1789 2094 2886
Inventories 1119 1376 1932 2267
Prepaid expenses 14 12 15 18
Total current assets 3147 3728 4685 5583
Net fixed assets 128 124 295 287
Totl assets 3275 3852 4980 5870
Liabilities and Owner's Equity
Current liabilities:
Bank loan 50 50 50 50
Accounts payable 1007 1443 2426 3212
Current portion long-term debt 60 50 50 100
Accrued wages 5 7 10 18
Total current liabilities 1122 1550 2536 3380
Long-term debt 960 910 860 760
Common stock 150 150 150 150
Retained earnings 1043 1242 1434 1580
Total liabilities and owner's equity 3275 3852 4980 5870

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