The consolidated balance sheets for Lloyd Lumber Company at the beginning and end of 2015 follow. The company bought $50 million worth of fixed assets. The charge for depreciation in 2015 was $10 million. Net income was $33 mil- lion, and the company paid out $5 million in dividendsa. Fill in the amount of the source or use in the appropriate column.b. Prepare a statement of cash flows.c.Briefly summarize your findings. Lloyd Lumber Company:Balance Sheets at Beginning and End of 2015 ($ million)ChangeJan. 1Dec. 31SourceUseCash$ 7$ 15Marketable securities11Net receivables3022Inventories5375Total current assets$ 90$ 123Gross fixed assets75125Less: Accumulated depreciation(25)$ 50(35)$ 90Net fixed assetsTotal assets$140$ 213Accounts payable$ 18$ 15Notes payable15Other current liabilities157Long-term debt824Total liabilities$ 44$ 61Common stock2957Retained earnings6795Total liabilities and equity$140$ 213Note: Total sources must equal total uses.3.

a] Jan-01 Dec-31 Source Use Cash $ 7 $ 15 $ 8…

Answered: Lloyd Lumber Company: Balance Sheets at…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The consolidated balance sheets for Lloyd Lumber Company at the beginning and end of 2015 follow. The company bought $50 million worth of fixed assets. The charge for depreciation in 2015 was $10 million. Net income was $33 mil- lion, and the company paid out $5 million in dividends

a. Fill in the amount of the source or use in the appropriate column.

b. Prepare a statement of cash flows.

c.Briefly summarize your findings.

Lloyd Lumber Company:
Balance Sheets at Beginning and End of 2015 ($ million)
Change
Jan. 1
Dec. 31
Source
Use
Cash
$ 7
$ 15
Marketable securities
11
Net receivables
30
22
Inventories
53
75
Total current assets
$ 90
$ 123
Gross fixed assets
75
125
Less: Accumulated depreciation
(25)
$ 50
(35)
$ 90
Net fixed assets
Total assets
$140
$ 213
Accounts payable
$ 18
$ 15
Notes payable
15
Other current liabilities
15
7
Long-term debt
8
24
Total liabilities
$ 44
$ 61
Common stock
29
57
Retained earnings
67
95
Total liabilities and equity
$140
$ 213
Note: Total sources must equal total uses.
3.

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