Preparing a statement of cash flows from changes in balance sheet accounts. The comparative balance sheets of Southwest Airlines show the following information for a recent year (amounts in thousands):

a. Prepare a statement of cash flows for Southwest Airlines for the year. Treat changes in non-operating assets as investing transactions and changes in nonoperating liabilities as financing transactions.

b. Discuss briefly the pattern of cash flows from operating, investing, and financing activities for Southwest Airlines for the year.

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Change Amount Direction Cash 40,308 Increase Accounts Receivable 15,351 Decrease Inventories 15,117 Increase Prepayments 16,776 Increase Property, Plant, and Equipment (at cost) 1,134,644b Increase Accumulated Depreciation 264,088b Increase Other Non-operating Assets 8,711 Increase Accounts Payable 660 Decrease Other Current Liabilities 114,596 Increase Long-term Debt .... Other Non-operating Liabilities Common Stock Retained Earnings 244,285 Increase 140,026 Increase 96,991 Increase 340,879c Increase