Online Bridge Program: Cash Flow Forecasting Butler Lumber Cash Flow Analysis
Use the following income statement and balance sheet to identify Butler Lumber's sources and uses of cash on the cash flow sheet. You will then be directed to record this information on the funds flow statement. W hen you have finished the funds flow statement and checked your work, you should print the statement for use in the next exercise.
Butler Lumber Corporation Income Statement For the Years Ending December 31, 1988 - December 31, 1990 and for First Quarter 1991 (in thousands of dollars)
Net sales Cost of goods sold Beginning inventory Purchases
$
Less ending inventory
Gross profit Operating expense
1,461
1989 2,013
$
239 1,524 $
239
1,763
$
326
1990 2,694
1st Qtr 1991 $ 718
326 2,042
418 660
2,368
$
418
1,078 556
$
1,222
$
1,437
$
1,950
$
522
$
475 425
$
576 515
$
744 658
$
196 175
Interest expense Net income before taxes
$
183 1,278 $
Total cost of goods sold
1988 1,697
13 $
37
Provision for Income taxes e ncom ncome e
20 $
41
6
33 $
53
7
10 $
11
9
2
Butler Lumber Corporation Balance Sheet At December 31, 1988 - December 31, 1990, and March 31, 1992 (in thousands of dollars)
1988
Cash Accounts receivable
$
Inventory Total current assets
Notes payable, bank Notes payable, Mr. Stark Notes payable, trade Accounts payable Accrued expenses expenses urre urren n por por on o ongong- erm erm e Total current liabilities
$
$
468
$
1st Qtr 1991
1990
49 222
$
325
126
596
41 317
$
418 $
140
776
31 345 556
$
157
932 162
$
594
$
736
$
933
$
1,094
$
105 124 24
$
146 192 30
$
233 256 39
$
247 157 243 36
$
260
$
375
$
535
$
690
Long-term debt Total liabilities
58 171 239
Property (net) Total assets
1989
64 $
324
57 $
432
50 $
585
47 $
737
Net worth Total liabilities and owners' equit $
270 594
304 $
736
348 $
933
357 $
1,094
Online Bridge Program: Cash Flow Forecasting Butler Lumber Cash Flow Analysis
Using Butler Lumber's income statement and balance sheet, identify the company's sources and uses of cash on this cash flow sheet. After you have completed and checked your work, you will complete the funds flow statement. Butler Lumber Company Sources and Uses of Cash December 31, 1988 - December 31, 1990 (in thousands of dollars) From Balance Sheet Assets Cash Accounts receivable Inventory Property, plant, and equipment (net)
Dec-88
Dec-90
Sources
Liabilities and Equity
Notes payable, bank Notes payable, Mr. Stark Notes payable, trade Accounts payable Accrued expenses Current portion of long-term debt Long-term debt Net worth (Retained earnings) Totals
Uses
Online Bridge Program: Cash Flow Forecasting Butler Lumber Cash Flow Analysis Correct Answers Butler Lumber Company Sources and Uses of Cash December 31, 1988 - December 31, 1990 (in thousands of dollars) From Balance Sheet
Dec-88
Dec-90
Sources
Uses
Assets
Cash
$
58
$
41
$
17
$
-
Accounts receivable
$
171
$
317
$
-
$
146
Inventory
$
239
$
418
$
-
$
179
Property, plant, and equipment (net)
$
126
$
157
$
-
$
31
Notes payable, bank
$
-
$
233
$
233
$
-
Notes payable, Mr. Stark
$
105
$
-
$
-
$
105
Notes payable, trade
$
-
$
-
$
-
$
-
Accounts payable
$
124
$
256
$
132
$
-
Accrued expenses
$
24
$
39
$
15
$
-
Current portion of long-term debt
$
7
$
7
Long-term debt
$
64
$
50
$
-
$
14
Net worth (Retained earnings)
$
270
$
348
$
78
$
-
$
475
$
475
Liabilities and Equity
Totals
Online Bridge Program: Cash Flow Forecasting Butler Lumber Cash Flow Analysis
Complete this funds flow statement using the cash flow sheet you just compiled. When you are finished, print this sheet for use in the next exercise.
Butler Lumber Company Funds Flow Statement December 31, 1988 - December 31, 1990 (in thousands of dollars)
Sources
Cash Bank borrowing (Notes payable, bank) Trade credit (Accounts payable) Accrued expenses Net worth (Retained earnings) Total sources Uses
Buyout of Mr. Stark Accounts receivable (net) Inventories Increase in fixed assets Reduction of long-term debt Total uses
Online Bridge Program: Cash Flow Forecasting Butler Lumber Cash Flow Analysis Correct Answers Butler Lumber Company Funds Flow Statement December 31, 1988 - December 31, 1990 (in thousands of dollars)
Sources
Cash
$
17
Bank borrowing (notes payable, bank)
233
Trade credit (Accounts payable)
132
Accrued expenses
15
Net worth (Retained earnings)
78
Total sources
$
475
$
105
Uses
Buyout of Mr. Stark Accounts receivable (net)
146
Inventories
179
Increase in fixed assets
31
Reduction of long-term debt
14
Total uses
$
475
