Chapter 1, Problem 1.72BP

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 Tidal Wave Company for the year ended March 31, 2019 (in millions):

Purchases of property, plant, and equipment for cash....	$ 3,500	Other investing cash payment…...	$ 200
Net income.....	3,050	Accounts receivable..........	550
Adjustments to reconcile net income to net cash provided by operating activities ............	2,380	Payments of dividends…….	360
		Common stock……..	4,830
		Issuance of common Stock......	200
Revenues.............................	$9,400	Cash proceeds on sale of property, plant, and equipment………..	60
Cash, beginning of year………	270
end of year………..	1,900
Cost of goods sold................	37,410	Retained earnings..................	12,900

Requirements

1. Prepare Tidal Wave Company’s cash flow statement for the year ended March 31, 2019. Not all the items listed will appear on the cash flow statement

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