P1-67B. (Learning Objective 4: Preparing a Statement of Cash Flows) The following data is derived from the financial statements of The High Tide Company at the year ended May 31, 20X7 (in thousands).

Requirements 1. Prepare a Statement of Cash Flows for the year ended May 31, 20X7. Not all the items given appear on the Statement of Cash Flows.
2. Which activities provided the largest amount of cash? Is this a sign of financial strength or weakness?

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Net income... Purchases of property, plant and equipment Adjustments to reconcile net Other investing cash 3,500 payments ........ 180 3,000 Accounts receivable............... 510 Payment of dividends. 290 income to net cash provided Share capital... 4,900 by operating activities....... 2,420 Issuance of shares...... 175 Revenues..... 59,200 Sales of property, plant Cash, beginning of year...... 150 and equipment..... 50 end of year. 1,825 Retained earnings... 12,000 Cost of goods sold 36,250