The following data are derived from the 2009 financial statements of Southwest Airlines. All dollars are in millions. Southwest has a December 31 year-end. Cash balance, January 1, 2009 .......... $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

Chapter 1, Exercises #13

The following data are derived from the 2009 of Southwest Airlines. All dollars are in millions. Southwest has a December 31 year-end.

Cash balance, January 1, 2009 .......... $1,390
Cash paid for repayment of debt ......... 122
Cash received from issuance of .... 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 ....... 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, 2009.
(b) Discuss whether the company’s cash from operations was sufficient to finance its investing activities. If it was not, how did the company finance its investing activities?

Financial Statements
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... Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...