The consolidated balance sheets for Lloyd Lumber Company at the beginning and end of the year follow. The company bought $50 million worth of fixed assets. The charge for depreciation during the year 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 the year ($ million)

Change

Jan. 1Dec. 31SourceUse

Cash$7$52

Marketable securities011

Net receivables3022

Inventories5375

Total current assets$90$23

Gross fixed assets75125

Less: Accumulated depreciation( 25) (235)

Net fixed assets$50$90

Total assets$140$213

Accounts payable$18$15

Notes payable315

Other current liabilities157

Long-term debt824

Common stock2957

Retained earnings6795

Total liabilities and equity$140$213

Note: Total sources must equal total uses.

b.Create statement of cash flows.

c.Briefly summarize your findings.