Suppose the following data are derived from the 2014 financial statements of Southwest Airlines. (All dollars are
Question:
Suppose the following data are derived from the 2014 financial statements of Southwest Airlines. (All dollars are in millions.) Southwest has a December 31 year-end.
Cash balance, January 1, 2014.......... $1,390
Cash paid for repayment of debt......... 122
Cash received from issuance of common stock.... 144
Cash received from issuance of long-term debt.... 500
Cash received from customers............ 9,823
Cash paid for property and equipment......... 1,529
Cash paid for dividends............. 14
Cash paid for repurchase of common stock....... 1,001
Cash paid for goods and services................. 6,978
Instructions
(a) After analyzing the data, prepare a statement of cash flows for Southwest Airlines for the year ended December 31, 2014.
(b) Discuss whether the company’s net cash provided by operating activities was sufficient to finance its investing activities. If it was not, how did the company finance its investing activities?
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Step by Step Answer:
Accounting Tools for Business Decision Making
ISBN: 978-1118128169
5th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso