Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pizza International, Incorporated, reported the following Information (In thousands): Operating Activities Net Income $ 118 Depreciation 33,395 Increase in receivables 188 Decrease in inventory 679

image text in transcribed

Pizza International, Incorporated, reported the following Information (In thousands): Operating Activities Net Income $ 118 Depreciation 33,395 Increase in receivables 188 Decrease in inventory 679 Increase in prepaid expenses 682 Decrease in accounts payable 8,738 Increase in accrued liabilities 737 Decrease in income taxes payable 2,757 Payments on notes payable 12,709 Cash paid for equipment 29,091 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Based on this information, compute cash flow from operating activities using the indirect method. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.) PIZZA INTERNATIONAL, INCORPORATED Cash Flow from Operating ActivitiesIndirect Method (in thousands) Net Income Net Cash Flows Provided by Operating Activities

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting concepts and applications

Authors: Albrecht Stice, Stice Swain

11th Edition

978-0538750196, 538745487, 538750197, 978-0538745482

More Books

Students also viewed these Accounting questions

Question

Why are net worth calculations so valuable?

Answered: 1 week ago

Question

Explain how to handle conflict effectively.

Answered: 1 week ago

Question

In what ways do personal and social media change how we think?

Answered: 1 week ago

Question

How do virtual communities diff er from physical communities?

Answered: 1 week ago