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Pizza International, Inc., reported the following information (in thousands): Operating Activities Net Income $ 112 Depreciation 33,365 Increase in receivables 182 Decrease in inventory 667

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

Operating Activities
Net Income $ 112
Depreciation 33,365
Increase in receivables 182
Decrease in inventory 667
Increase in prepaid expenses 676
Decrease in accounts payable 8,732
Increase in accrued liabilities 731
Decrease in income taxes payable 2,745
Payments on notes payable 12,703
Cash paid for equipment 29,085

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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