P1-66A. (Learning Objectives 3, 4: Evaluate business operations; construct a statement ofcash flows) The following data come from the financial statements of Mitchell Company forthe year ended March 31, 2019 (in millions):Purchases of property,plant, and equipment for cash.... $ 2,640Net income..................................... 3,020Adjustments to reconcile netincome to net cash providedby operating activities ................ 2,420Revenues........................................ 60,100Cash, beginning of year.................. 220end of year........................... 2,775Other investing cashpayments....................................... $ 195Accounts receivable........................... 650Payment of dividends........................ 265Common stock.................................. 4,900Issuance of common stock................. 190Cash proceeds on sale ofproperty, plant, and equipment..... 25Retained earnings.............................. 12,830Cost of goods sold.......................... 37,550Requirements1. Prepare Mitchell Company’s cash flow statement for the year ended March 31, 2019. Notall items listed will appear on the cash flow statement.2. What activities provided the largest source of cash? Is this a sign of financial strength orweakness?
P1-66A. (Learning Objectives 3, 4: Evaluate business operations; construct a statement of
the year ended March 31, 2019 (in millions):
Purchases of property,
plant, and equipment for cash.... $ 2,640
Net income..................................... 3,020
Adjustments to reconcile net
income to net cash provided
by operating activities ................ 2,420
Revenues........................................ 60,100
Cash, beginning of year.................. 220
end of year........................... 2,775
Other investing cash
payments....................................... $ 195
Accounts receivable........................... 650
Payment of dividends........................ 265
Common stock.................................. 4,900
Issuance of common stock................. 190
Cash proceeds on sale of
property, plant, and equipment..... 25
Retained earnings.............................. 12,830
Cost of goods sold.......................... 37,550
Requirements
1. Prepare Mitchell Company’s cash flow statement for the year ended March 31, 2019. Not
all items listed will 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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