Preparing and interpreting the statement of cash flows. UAL Corporation is the parent company for United Airlines. Exhibit 13.13 presents a comparative balance

sheet, and Exhibit 13.14 presents a comparative income statement for UAL Corporation for Year 9 and Year 10. Expenditures on new property, plant, and equipment were \(\$ 1,568\) million in Year 9 and \(\$ 2,821\) million in Year 10. Changes in other noncurrent assets are investing activities, and changes in other noncurrent liabilities are financing activities.

a. Prepare T-account work sheets for Year 9 and Year 10 for a statement of cash flows.

b. Prepare a comparative statement of cash flows for Year 9 and Year 10.

c. Comment on the relations between cash flows from operating, investing, and financing activities for Year 9 and Year 10.

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JAL CORPORATION EXHIBIT 13.13 Comparative Balance Sheet (all dollar amounts in millions) Problem 14 December 31 Year 8 Year 9 Year 10 ASSETS Cash $1,087 $465 $ 221 Marketable Securities 1.042 1,065 Accounts Receivable inti 741 888 913 Inventories .... 210 249 323 Prepayment 112 179 209 Total Currant Assets Property, Plant, and Equipment Accumulated Depreciation Other Assets $2,150 $2,823 $2,732 7,710 7,704 8,587 13,769; (3,806) 13,8361 610 570 605 Total Assets $6.701 $7,292 $8.086 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts Payable... Short-term Borrowing Current Portion of Long-term Debt Acvances from Customers $ 540 $ 596 $ 552 121 116 447 110 84 89 619 661 843 Other Current Liabilities... Total Current Liabilities Long-term Dent Deferred Tax Liability Other Noncurrent Liabilities Tota Labilities, 1.485 1,438 1,826 $2,875 53,223 $3,757 1.418 334 1.475 382 3154 368 716 719 $5.360 $5,610 721 $6.321 Common Stack Acditional Paidin Capital $119 $ 119 $ 120 48 48 52 Accumulated Other Comoretiersive Inco Unrealized Folding Gain on Marsetable Securities ... Retained Earnings 85 92 1,188 1,512 1,513 Treasury Stock.. (14) (112) (112) Total Shareholders' Equity $1.341 $1,652 $1,765 Total Lablities and Shareholders' Equity $6.701 $7,292 $8.086