Question
Chapter 6 - problem 6.26 Please let me know if more information is needed 26) Please prepare the statement of cash flows from changes in
Chapter 6 - problem 6.26
Please let me know if more information is needed
26) Please prepare the statement of cash flows from changes in balance sheet accounts. The comparative balance sheets of Incloud Airlines show the following information for a recent year(amounts in thousands of US$):
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) . . . . . . .1,134,644 Increase
Accumulated Depreciation . . . . . . . . . . . . . . . . . . . .264,088 Increase
Other Non-operating Assets . . . . . . . . . . . . . . . . . . 8,711 Increase
Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . .660 Decrease
Other Current Liabilities . . . . . . . . . . . . . . . . . . . . . . .114,596 Increase
Long-Term Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244,285 Increase
Other Non-operating Liabilities . . . . . . . . . . . . . . . 140,026 Increase
Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96,991 Increase
Retained Earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . 340,879 Increase
a. Cash was $378,511 at the beginning of the year and $418,819 at the end of the year.
b Incloud Airlines did not sell any property, plant, and equipment during the year.
c Net income was $474,378.
a. please prepare the statement of cash flows for Incloud Airlines for the year. Treat changes innon-operating assets as investing transactions and changes in non-operating liabilitiesas financing transactions.
b. Discuss briefly the pattern of cash flows from operating, investing, and financing activities for Incloud Airlines for the year.
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