Pizza International, Inc., reported the following information (in thousands) Operating Activities $ 712 33,395 188 679 682 8,738 737 2,757 12,709 29,091 Net Income Depreciation Increase in receivables Decrease in inventory Increase in prepaid expenses Decrease in accounts payable Increase in accrued liabilities Decrease in income taxes payable Payments on notes payable Cash paid for equipment The following summarized income statement for Pizza International, Inc. (in thousands) $145,351 46,400 98,951 56,925 33,395 7,799 832 120 $ 712 Revenues Cost of Sales Gross Profit Salary and Wages Expense Depreciation Office Expenses Net Income before Income Tax Expense Income Tax Expense Net Income Required 1. Based on this information, compute cash flow from operating activities using the direct method. Assume Prepaid Expenses and Accrued Liabilities relate to office expenses 2. What was the primary reason that Pizza International was able to report large positive cash flow from operations despite nearly having a net loss