<PAGE>
 
                                                                    SCHEDULE III
                                                                     (CONTINUED)
 
                               ZAPATA CORPORATION
                             (PARENT COMPANY ONLY)
 
                       CONDENSED STATEMENT OF CASH FLOWS
 

<TABLE>
<CAPTION>
                                                                   YEAR ENDED
                                                                  SEPTEMBER 30,
                                                                      1994
                                                                  -------------
                                                                       (IN
                                                                   THOUSANDS)
<S>                                                               <C>
Cash flow used by operating activities:
  Net loss.......................................................   $ (8,319)
  Adjustments to reconcile net loss to net cash used by operating
   activities:
    Depreciation.................................................      2,321
    Gain on sale of assets.......................................    (37,457)
    Equity in loss of subsidiaries...............................     29,452
    Changes in assets and liabilities:
      Receivables................................................       (700)
      Accounts payable and accrued liabilities...................       (991)
      Deferred income taxes......................................     (4,137)
      Other assets and liabilities...............................      5,844
                                                                    --------
        Total adjustments........................................     (5,668)
                                                                    --------
        Net cash used by operating activities....................    (13,987)
                                                                    --------
Cash flow provided by investing activities:
  Proceeds from sale of Tidewater common stock...................     85,853
  Restricted cash investments....................................     74,083
  Advances from subsidiaries.....................................     17,582
  Business acquisitions, net of cash acquired....................    (73,222)
  Capital expenditures...........................................        (67)
                                                                    --------
        Net cash provided by investing activities................    104,229
                                                                    --------
Cash flow used by financing activities:
  Principal payments of long-term obligations....................    (85,524)
  Preferred stock redemption.....................................     (2,245)
  Dividend payments..............................................     (1,566)
                                                                    --------
        Net cash used by financing activities....................    (89,335)
                                                                    --------
Net increase in cash and cash equivalents........................        907
Cash and cash equivalents at beginning of year...................     10,189
                                                                    --------
Cash and cash equivalents at end of year.........................   $ 11,096
                                                                    ========
</TABLE>

 
 
        This condensed statement should be read in conjunction with the
 Consolidated Financial Statements and Notes thereto which are included in Item
                                   8 herein.
 
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