Cash flows from operating activities—indirect method OBJ. 2 Selected data derived from the income statement and balance sheet of National Beverage Co. for a recent year are as follows:

Income statement data (in thousands):

Net earnings (loss) $43,993 Losses on inventory write-down and fixed assets 7 Depreciation expense 10,174 Stock-based compensation expense (noncash) 290 Balance sheet data (in thousands):

Increase in accounts receivable 5,679 Increase in inventory 7,509 Decrease in prepaid expenses 2,239 Decrease in accounts payable and other current liabilities 1,341

a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method for National Beverage Co.

b. Interpret your results in part (a).