Cash Flows from Operating Activities-Indirect Method 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 $49,335 Gain on disposal of property 1,170 Depreciation expense 11,615 Other items involving noncash expenses 1,400 Balance sheet data: Increase in accounts receivable 1,750 Decrease in inventory 1,025 Increase in prepaid expenses 560 Decrease in accounts payable 695 Decrease in accrued and other current liabilities 955 a. Prepare the Cash flows from operating activities" section of the statement of cash flows, using the indirect method for National Beverage Corp. Use the minus sign to indicate cash outflows, 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: Net incomeV Adjustments to reconcile net income to net cash flow from operating activities: Depreciation. Gain on disposal of property Other items involving noncash expenses Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in inventory Increase in prepaid expenses Decrease in accounts payable 000 0000 Cash Flows from Operating Activities (in thousands) Cash flows from (used for) operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Gain on disposal of property Other items involving noncash expenses Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in inventory Increase in prepaid expenses Decrease in accounts payable Decrease in accrued and other current liabilities Net cash flow from operating activities Feedback b. The company has positive earnings and positive net cash flow from operating activities. The increase in accounts receivable indicates a(n) increase in sales. In addition, the company is using its cash to decrease its accounts payable balance, which indicates that the company is generating enough cash from operations to pay for its inventory in cash Overall, National Beverage is doing well financially