15. [Sale of receivables] Nash-Finch [NAFC] began selling re- ceivables through its subsidiary, Nash-Finch Funding (Funding), in 1997 Funding sells most of these receivables to an outside purchaser. Nash-Finch reported the following year-end balances (Sthousands): 1997 1998 1999 Receivables (balance sheet) $174.0 $169.7 $154.1 Receivables sold to Funding 44.6 45.7 50.5 Receivables sold by Funding to purchaser 37.0 36.8 41.8 Nash-Finch reported the following amounts in its cash flow statement (Sthousands): 1997 1998 1999 Cash from Investments Sale (repurchase) of receivables $37.0 S(0.2) $5.0

a. Relate the cash flow statement amounts to the receivables transactions.

b. Compute the effect of the receivables transactions on the amount of receivables shown on the Nash-Finch balance sheet at each year-end.

c. State and justify the cash flow category that, for financial analysis, should include the proceeds from receivables sales.