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In its 2018 Annual Report to Shareholders, Sistees Corporation included the following information on cash flows from operations: CONSOLIDATED STATEMENTS OF CASH FLOWS (in S
In its 2018 Annual Report to Shareholders, Sistees Corporation included the following information on cash flows from operations: CONSOLIDATED STATEMENTS OF CASH FLOWS (in S thousands) 2018 2017 Operating activities: Net income Adjustments to reconcile to net cash provided $10,680$30,100 by operating activities Depreciation and amortization 25,734 5,156 (486) 20,051 9,885 (864) eferred income taxes Equity income Changes in operating assets and liabilities Receivables Inventories Accounts payable and accrued expenses Prepaids and other, net 17,888(33,018) 39,331(10,173) (23,737)13,515 10.913)5893 Net Cash Provided by Operating Activities63.653$35,389 Explain why Sisters Corporation subtracts equity income from its net income in its measurement of cash flows Did accounts receivable increase or decrease during 2018? Explain 1. 2
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