Statement of cash flows The consolidated balance sheets for the Hoffmeister

Statement of cash flows

The consolidated balance sheets for the Hoffmeister Lumber Company at the beginning and end of 2012 follow. The company bought $50 million worth of fixed
assets. The charge for depreciation in 2012 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.

Hoffmeister Lumber Company: Balance Sheets at Beginning and End of 2012 (Millions of Dollars)

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

Note: Total sources must equal total uses.

b. Prepare a statement of cash flows.

c. Briefly summarize your findings.