Statement of cash flows relations. Selected data from the statement of cash flows for AMR Corporation, the parent company of American Airlines, for three recent years appear below

(amounts in millions):

Year 10 Year 11 Year 12 Inflows of Cash Proceeds from Long-term Borrowings Revenues from Operations Increasing Cash . . .

Issue of Common Stock Sale of Property, Plant, and Equipment Other Investing Transactions Total Inflows Outflows of Cash Acquisition of Property, Plant, and Equipment Expenses for Operations Decreasing Cash Repayments of Long-term Debt Other Investing Activities Total Outflows Increase (Decrease) in Cash

$ 836 $ 5,096 $ 3,190 19,536 19,083 17,233 67 37 3

332 401 220 71 0 268

$20,842 $24,617 $20,914

$ 3,678 $ 3,640 $ 1,881 16,394 766 18,541 18,344 922 0 687 1,501 0

$20,838 $24,604 $20,912

$ 4 $ 13 $ 2

a. Prepare a statement of cash flows for AMR for each of the three years using the format in Exhibit 1.3. Set cash flow from operations equal to revenues providing cash minus expenses using cash. The balance in cash at the beginning of Year 10 was $85 million.

b. Comment on the relation among cash flows from operating, investing, and financing activities during the three years.