3.1 Sources and Uses of Cash Consider the following balance sheets for the Philippe Corporation. Calculate the changes in the various accounts and, where applicable, identify the change as a source or use of cash. What were the major sources and uses of cash? Did the company become more or less liquid during the year? What happened to cash during the year?
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PHILIPPE CORPORATION
2011 and 2012 Balance Sheets ($ in millions)
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2011
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2012
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Assets
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Current assets Cash
Accounts receivable Inventory
Total Fixed assets
Net plant and equipment Total assets
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$ 210
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$ 215
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355
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310
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507
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328
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$1,072
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$ 853
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$6,085
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$6,527
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$7,157
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$7,380
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Liabilities and Owners' Equity
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Current liabilities Accounts payable Notes payable
Total Long-term debt Owners' equity
Common stock and paid-in surplus Retained earnings
Total
Total liabilities and owners' equity
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$ 207
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$ 298
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1,715
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1,427
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$1,922
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$1,725
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$1,987
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$2,308
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$1,000
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$1,000
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2,248
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2,347
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$3,248
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$3,347
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$7,157
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$7,380
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