Question
Pizza International, Incorporated, reported the following information (in thousands): Operating Activities Net Income $ 117 Depreciation 33,390 Increase in receivables 187 Decrease in inventory 677
Pizza International, Incorporated, reported the following information (in thousands): Operating Activities Net Income $ 117 Depreciation 33,390 Increase in receivables 187 Decrease in inventory 677 Increase in prepaid expenses 681 Decrease in accounts payable 8,737 Increase in accrued liabilities 736 Decrease in income taxes payable 2,755 Payments on notes payable 12,708 Cash paid for equipment 29,090.
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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