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    Financial management Lloyd Lumber Company Cash Flow Statement

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    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)
    Change
    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

    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 $213

    b. Prepare a statement of cash flows.

    c. Briefly summarize your findings.

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    Solution Summary

    Financial management for Lloyd Lumber Company cash flow statements are examined.

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