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Pizza International, Inc. operates 1,300 family restaurants around the world. The company's annual report contained the following information (in millions): $ Operating Activities Net Loss
Pizza International, Inc. operates 1,300 family restaurants around the world. The company's annual report contained the following information (in millions):
$ Operating Activities Net Loss Depreciation Increase in Receivables Decrease in Inventory Increase in Prepaid Expenses Decrease in Accounts Payable Decrease in Accrued Liabilities Increase in Income Taxes Payable Payments on Notes Payable Cash Paid for Equipment (9,467) 33,320 185 658 694 2,297 749 1,891 12,721 29,103 The following summarized income statement for Pizza International, Inc. (in millions): Revenues Cost of Sales Gross Profit Salary and Wages Expense Depreciation Other Expenses Net Loss before Income Tax Expense Income Tax Expense Net Loss $ 138,000 46,250 91,750 56.910 33,320 7,796 (6.276) 3,191 $ (9,467) Required: 1. Based on this information, compute cash flow from operating activities using the direct method. Assume that Prepaid Expenses and Accrued Liabilities relate to other expenses (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions. (i.e., 10,000,000 should be entered as 10.) PIZZA INTERNATIONAL, INC. Cash Flow from Operating ActivitiesDirect Method 2. What was the primary reason that Pizza International was able to report positive cash flow from operations despite having a net loss expense and it The primary reason for the net loss was the affect cash flow from operating activitiesStep by Step Solution
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