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. When 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) 1st Qtr 1991 $ 718 418 660 $ $ $ 1,078 556 522 196 175 10 $ $ 11 2 9

Net sales Cost of goods sold Beginning inventory Purchases Less ending inventory Total cost of goods sold Gross profit Operating expense Interest expense Net income before taxes Provision for Income taxes Net income

1988 $ 1,697 183 1,278 $ $ $ 1,461 239 1,222 475 425 13 $ $ 37 6 31

1989 $ 2,013 239 1,524 $ $ $ 1,763 326 1,437 576 515 20 $ $ 41 7 34

1990 $ 2,694 326 2,042 $ $ $ 2,368 418 1,950 744 658 33 $ $ 53 9 44

Butler Lumber Corporation Balance Sheet At December 31, 1988 - December 31, 1990, and March 31, 1992 (in thousands of dollars) 1st Qtr 1991 $ 31 345 556 $ $ $ 932 162 1,094 247 157 243 36 7 690 47 $ 737

1988 Cash Accounts receivable Inventory Total current assets Property (net) Total assets Notes payable, bank Notes payable, Mr. Stark Notes payable, trade Accounts payable Accrued expenses Current portion of long-term debt Total current liabilities Long-term debt Total liabilities $ $ $ $ $ 58 171 239 468 126 594 105 124 24 7 260 64 324 $ $ $ $ $

1989 49 222 325 596 140 736 146 192 30 7 375 57 432 $ $ $ $ $

1990 41 317 418 776 157 933 233 256 39 7 535 50 585

Net worth Total liabilities and owners' equity $

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) 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 Dec-88 Dec-90 Sources 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 Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) 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) $ $ $ $ $ $ $ $ 105 124 24 7 64 270 $ $ $ $ $ $ $ $ 233 256 39 7 50 348 Totals $ $ $ 78 475 $ $ $ 14 475 $ $ $ $ $ 233 132 15 $ $ $ $ $ 105 $ $ $ $ 58 171 239 126 $ $ $ $ 41 317 418 157 $ $ $ $ 17 $ $ $ $ 146 179 31 Dec-88 Dec-90 Sources Uses

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 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 $ $ 105 146 179 31 14 475 $ $ 17 233 132 15 78 475