Pizza International, Inc., reported the following information (in thousands):

Operating Activities
Net Income	$	119
Depreciation		33,400
Increase in receivables		189
Decrease in inventory		681
Increase in prepaid expenses		683
Decrease in accounts payable		8,739
Increase in accrued liabilities		738
Decrease in income taxes payable		2,759
Payments on notes payable		12,710
Cash paid for equipment		29,092

Required:

1. Based on this information, compute cash flow from operating activities using the indirect method.
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?