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Pizza International, Inc., reported the following information (in thousands): Operating Activities Net Income $ 115 Depreciation 33,380 Increase in receivables 185 Decrease in inventory 673
Pizza International, Inc., reported the following information (in thousands):
Operating Activities | |||
Net Income | $ | 115 | |
Depreciation | 33,380 | ||
Increase in receivables | 185 | ||
Decrease in inventory | 673 | ||
Increase in prepaid expenses | 679 | ||
Decrease in accounts payable | 8,735 | ||
Increase in accrued liabilities | 734 | ||
Decrease in income taxes payable | 2,751 | ||
Payments on notes payable | 12,706 | ||
Cash paid for equipment | 29,088 | ||
Required:
- Based on this information, compute cash flow from operating activities using the indirect method.
- What was the primary reason that Pizza International was able to report large positive cash flow from operations despite nearly having a net loss?
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