Preparing a statement of cash flows from changes in balance sheet accounts. The comparative balance sheets of Delta Airlines show the following information for a re- cent year (amounts in millions):LO1.

a. Prepare a statement of cash flows for Delta Airlines for the year.

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

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Change Cash.... Accounts Receivable Amount Direction $ 462" Decrease 26 Decrease Inventories..... 11 Increase: Prepayments 19 Increase Investments in Securities 345 Increase Property, Plant, and Equipment (at cost) 1.219 Increase Accumulated Depreciation. 363b Increase Accounts Payable 14 Increase Notes Payable. 88 Increase Other Current Liabilities. 32 Decrease Long-term Debt 674 Increase Common Stock Retained Earnings 187 Decrease 186 Increase "Cash was $530 million at the beginning of the year and $68 million at the end of the year. "Delta Airlines sold for $30 million equipment originally costing $151 million on which the firm had previously recognized $96 million of depreciation. "Net income was $303 million.