Reference no: EM13983490

The consolidated balance sheets for the Hoffmeister 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 million, 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.

Hoffmeister Lumber Company: Balance Sheets at Beginning and End of 2015 (Millions of Dollars)

			Change
	Jan-01	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	5211
Note: Total sources must equal total uses.