Chapter 1, Problem 1.66AP

LO 3, 4

(Learning Objectives 3,4: Evaluate business operations; construct a statement of cash flows) The following data come from the financial statements of Mitchell Company for the year ended March 31, 2019 (in millions):

Purchases of property, plant, and equipment for cash....................	$ 2,640	Other investments cash payments.........	$ 195
Net income...............	3,020	Accounts receivable ..	650
Adjustments to receivable net income to net cash provided by operating activities.....................	2,420	Payment of dividends......	265
Revenues ...................	60,100	Common Stock.........	4,900
Cash, beginning of year ..........................	220	Issuance of common stock................	190
end of year.................	2,775	Cash proceeds on sale of property, plant, and equipment.........	25
Cost of goods sold......	37,550	Retained earnings.....	12,830

Requirements

1. 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. 2. What activities provided the largest source of cash? Is this a sign of financial strength or weakness?