He is getting ready to rejoin the party

He has been captured by the Necromancer

He has already reached the Lonely Mountain

He has is now traveling through Mirkwood

They worked together and both groups benefited.

The men were solely dependent upon the dwarves.

The dwarfs were solely dependent upon the men.

They were both independent groups.

He thinks they will be successful, but will owe him treasure.

He thinks they will all be killed by the dragon.

He thinks they won't even make it to The Lonely Mountain.

He thinks goblins will kill them before they even get to the mountain.

He is happy about it because the dwarfs were terrible guests.

He's sad to see them go because he feels like they are friends now.

He was surprised and a little frightened when he realizes Thorin might actually be who he says he is.

He laughs and tells Thorin he should give up the joke because no one can defeat a dragon.

The are excited, yet a little suspicious to see dwarfs

They won't let them into town

They are angry and attack the group

They are scared and flee the town