3. Preparing a statement of cash flows from changes in balance sheet accounts.
The comparative balance sheets of Incloud Airlines show the following information for a recent year (amounts in thousands of US$):

                  Change                           Amount        Direction
Cash                                                40,308a        Increase

Accounts Receivable                           15,351         Decrease

Inventories                                        15,117        Increase

Prepayments                                      16,776        Increase

Property , Plant and Equipment (at cost) 1,134,644b   Increase

Accumulated Depreciation                    264,088b      Increase

Other Non-operating Assets                 8,711          Increase

Accounts Payable                               660           Decrease

Other Current Liabilities                       114,596      Increase

Long-Term Debt                                 244,285      Increase

Other Nona-operating lLiabilities            140,026      Increase

Common Stock                                  96,991        Increase

Retained Earn ings                             340,879c    Increase

a Cash was $378,511 at the beginning of the year and $418,819 at the end of the year. bIncloud Airlines did not sell any property, plant and equipment during the year. cNet income was $474,378.

a. Prepare a statement of cash flows for Incloud 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 cask flows from operating, investing, and financing activities for Incloud Airlines for the year.