Statement of Changes in Financial Position. The consolidated balance sheets for CSULB Seasonal Products, Inc., at the beginning and end of 20X1 are presented below (in millions of dollars).
January 1, December 31,
20X1 20X1
ASSETS
Cash $ 12 $ 9
Accounts receivable 14 24
Inventories 4 12
Total current assets $ 30 $ 45
Gross fixed assets $120 $145
Less: Accumulated depreciation
Net fixed assets $ 75 $ 90
Total assets $105 $135
LIABILITIES AND EQUITY
Accounts payable $ 14 $ 11
Notes payable 10 10
Long-term debt 10 25
Common stock 30 30
Retained earnings 41 59
Total liabilities and equity $105 $135
CSULB earned $20 million after taxes during the year and paid cash dividends of $2 million. The annual depreciation expense during 20X1 was $10 million. The company purchased $25 million of fixed assets.
(a) Add source and use column to the balance sheet; (b) prepare a statement of changes in financial position on the cash basis, and include percentage computations; and (c) summarize your findings.