Question
Cash Flows from Operating ActivitiesIndirect Method Selected data derived from the income statement and balance sheet of National Beverage Co. for a recent year are
Cash Flows from Operating ActivitiesIndirect Method
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 income | $149,774 |
Loss on disposal of property | (149) |
Depreciation expense | 13,226 |
Other items involving noncash expense | 837 |
Balance sheet data (in thousands): | |
Increase in accounts receivable | 13,041 |
Increase in inventory | 7,565 |
Increase in prepaid expenses | 10,548 |
Increase in accounts payable and other current liabilities | 17,464 |
a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method for National Beverage Co. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Enter the amounts in thousands of dollars, as shown above.
National Beverage Co. | ||
Cash Flows from Operating Activities | ||
(in thousands) | ||
Cash flows from (used for) operating activities: | ||
$fill in the blank 41dfed027fb000b_2 | ||
Adjustments to reconcile net income to net cash flows from (used for) operating activities: | ||
fill in the blank 41dfed027fb000b_4 | ||
fill in the blank 41dfed027fb000b_6 | ||
fill in the blank 41dfed027fb000b_8 | ||
Changes in current operating assets and liabilities: | ||
fill in the blank 41dfed027fb000b_10 | ||
fill in the blank 41dfed027fb000b_12 | ||
fill in the blank 41dfed027fb000b_14 | ||
fill in the blank 41dfed027fb000b_16 | ||
Net cash flows from operating activities | $fill in the blank 41dfed027fb000b_17 | |
b. The company has earnings and net cash flow from operating activities. The increase in accounts receivable indicates a(n) in sales. In addition, the company is using its cash to decrease its accounts payable balance, which indicates that the company is . Overall, National Beverage is doing financially.
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