Cash flows from operating activities—indirect method Obj. 2 Selected data (in thousands) derived from the income statement and balance sheet of National Beverage Corp. for a recent year are as follows:

Income statement data:

Net income $49,311 Gain on disposal of property 1,188 Depreciation expense 11,580 Other items involving noncash expenses 1,383 Balance sheet data:

Increase in accounts receivable 1,746 Decrease in inventory 990 Increase in prepaid expenses 605 Decrease in accounts payable 710 Decrease in accrued and other current liabilities 995

a. Prepare the “Cash flows from operating activities” section of the statement of cash flows, using the indirect method for National Beverage Corp.

b. Interpret your results in part (a).

AppendixLO1