The consolidated balance sheets for Lloyd Lumber Company at the beginning and end of the year follow.
Question:
The consolidated balance sheets for Lloyd Lumber Company at the beginning and end of the year follow. The company bought $50 million worth of fixed assets. The charge for depreciation during the year was $10 million. Net income was $33 million, and the company paid out $5 million in dividends.
a.Fill in the amount of the source or use in the appropriate column.
Lloyd Lumber Company: Balance Sheets at Beginning and End of the year ($ million)
Change
Jan. 1Dec. 31SourceUse
Cash$7$52
Marketable securities011
Net receivables3022
Inventories5375
Total current assets$90$23
Gross fixed assets75125
Less: Accumulated depreciation( 25) (235)
Net fixed assets$50$90
Total assets$140$213
Accounts payable$18$15
Notes payable315
Other current liabilities157
Long-term debt824
Common stock2957
Retained earnings6795
Total liabilities and equity$140$213
Note: Total sources must equal total uses.
b.Create statement of cash flows.
c.Briefly summarize your findings.