The consolidated balance sheets for Lloyd Lumber Company at the beginning and end of 2009 follow. The company bought $50 million worth of fixed assets. The charge for depreciation in 2009 was $10 million. Net income was $33 million, and the company paid out $5 million in dividends.
a. Fill in the amount of the source or use in the appropriate column.
Lloyd Lumber Company: Balance Sheets at Beginning and End of 2009 ($ million)
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
b. Prepare a statement of cash flows.
c. Briefly summarize your findings.
Financial management for Lloyd Lumber Company cash flow statements are examined.