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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
P1-60A (Learning Objectives 4, 5: Construct a statement of cash flows; evaluate business operations) The following data come from the financial statements of The Big Wave Company for the year ended May 31, 2013 (in millions):
Â
Â
|
Purchases of property, plant, and equipment ....... |
 $  3,505 |
Other investing cash payments............................ |
 $       155 |
|
Net income........................... |
3,040 |
Accounts receivable................ |
900 |
|
Adjustments to reconcile net |
 |
Payment of dividends ............. |
290 |
|
income to net cash provided |
 |
Common  stock....................... |
4,810 |
|
by operating activities ...... |
2,350 |
Issuance of common stock...... |
180 |
|
Revenues .............................. |
59,000Â Â Â Â Â Â Â Â Â Sales of property, Â plant, |
||
|
Cash, beginning of year........ |
230 |
and equipment ................... |
65 |
|
end of year ................. |
1,915 |
Retained  earnings................... |
12,980 |
|
Cost of goods sold................ |
37,600 |
 |
 |
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â–¶ Requirements1. Prepare a cash flow statement for the year ended May 31, 2013. Not all items given appear on the cash flow statement.
2. What activities provided the largest source of cash? Is this a sign of financial strength or weakness?
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