Mattel, Inc., designs, manufactures, and markets toy products worldwide. Mattel's toys include Barbie \({ }^{\mathrm{TM}}\) fashion dolls and accessories, Hot Wheels \({ }^{\mathrm{TM}}\), and Fisher-Price brands. For a recent year, Mattel reported the following net cash flows from operating activities (in thousands):

Explain how Mattel can report negative net cash flows from operating activities during the first three quarters yet report net positive cash flows on December 31.objs. 4, 5

Transcribed Image Text:

First quarter ending March 31, 2005 $(374,933) Second quarter ending June 30, 2005 Year ending December 31, 2005 (551,080) Third quarter ending September 30, 2005 (629,006) 466,677