Preparing a statement of cash flows from changes in balance sheet accounts The comparative balance sheets of Southwest Airlines show the following information for a recent year (amounts in thousands):
a. Prepare a statement of cash flows for Southwest Airlines for the year. Treat changes in non-operating assets as investing transactions and changes in non-operating liabilities as financing transactions.
b. Discuss briefly the pattern of cash flows from operating, investing, and financing activities for Southwest Airlines for the year.

aCash was $378,511 at the beginning of the year and $418,819 at the end of the year.
bSouthwest Airlines did n sell any property plant, and equipment during the year.
cNet income was$474378.

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Change Amount Direction $ 40,308* Cash Increase Accounts Receivable Decrease 15,351 Increase Increase Inventories 15,117 Prepayments Property. Plant, and Equipment (at cost) Accumulated Depreciation... Other Nonoperating Assets . Accounts Payable ... Other Current Liabilities. Long-Term Debt Other Nonoperating Liabilities Common Stock ..... Retained Earnings.. 16,776 1,134,644 264,088 Increase Increase Increase 8,711 Decrease Increase Increase 660 114,596 244,285 Increase 140,026 Increase 96,991 Increase 340,879