(Learning Objectives 3, 4: Evaluate business operations; construct a statement ofcash flows) The following data come from the financial statements of Tidal Wave Companyfor the year ended March 31, 2019 (in millions):Purchases of property, plant,and equipment for cash.... $ 3,500Net income........................... 3,050Adjustments to reconcile netincome to net cash providedby operating activities ...... 2,380Revenues.............................. 59,400Cash, beginning of year........ 270end of year................. 1,900Other investing cashpayments............................ $ 200Accounts receivable................ 550Payment of dividends............. 360Common stock....................... 4,830Issuance of common stock...... 200Cash proceeds on sale ofproperty, plant, andequipment ......................... 60Cost of goods sold................ 37,410 Retained earnings................... 12,900Requirements1. 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 orweakness?
(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
Net income........................... 3,050
Adjustments to reconcile net
income to net cash provided
by operating activities ...... 2,380
Revenues.............................. 59,400
Cash, beginning of year........ 270
end of year................. 1,900
Other investing cash
payments............................ $ 200
Accounts receivable................ 550
Payment of dividends............. 360
Common stock....................... 4,830
Issuance of common stock...... 200
Cash proceeds on sale of
property, plant, and
equipment ......................... 60
Cost of goods sold................ 37,410
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?
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