FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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• The consolidated balance sheets for the Landon 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.
LANDON LUMBER COMPANY: BALANCE SHEET AT BEGINNING
AND END OF 2009 (Millions of Dollars)
Cash
Marketable Securities
Net Receivables
Inventories
Total current assets
Gross fixed assets
Less accumulated depreciation
Net fixed assets
Total assets
Accounts Payable
Notes Payable
Other Current Liabilities
Long-term debt
Common Stock
Retained Earnings
Total Liabilities and equity
Notes: Total sources must equal total uses.
b. Prepare a statement of cash flows
c. Briefly summarize your findings.
Jan. 1
$7
0
30
53
$ 90
S
Jan. 1
75
25
$50
$140
$ 18
3
15
8
29
67
$140
Dec. 31 Source
$ 15
11
3=2
22
75
$ 123
$ 15
Dec. 31 Source
125
35
$ 90
$213
1 Է ԵՐԵ
15
7
CHANGE
24
57
95
$213
Use
CHANGE
Use
||||
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Transcribed Image Text:• The consolidated balance sheets for the Landon 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. LANDON LUMBER COMPANY: BALANCE SHEET AT BEGINNING AND END OF 2009 (Millions of Dollars) Cash Marketable Securities Net Receivables Inventories Total current assets Gross fixed assets Less accumulated depreciation Net fixed assets Total assets Accounts Payable Notes Payable Other Current Liabilities Long-term debt Common Stock Retained Earnings Total Liabilities and equity Notes: Total sources must equal total uses. b. Prepare a statement of cash flows c. Briefly summarize your findings. Jan. 1 $7 0 30 53 $ 90 S Jan. 1 75 25 $50 $140 $ 18 3 15 8 29 67 $140 Dec. 31 Source $ 15 11 3=2 22 75 $ 123 $ 15 Dec. 31 Source 125 35 $ 90 $213 1 Է ԵՐԵ 15 7 CHANGE 24 57 95 $213 Use CHANGE Use ||||
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