Pizza International, Incorporated, reported the following information (in thousands): Operating Activities Net Income Depreciation Increase in receivables Decrease in inventory Increase in prepaid expenses Decrease in accounts payable Increase in accrued liabilities Revenues Cost of Sales Gross Profit Salary and Wages Expense Depreciation $440 33,355 Office Expense Net Income before Income Tax Expense Income Tax Expense Net Income 180 663 674 Decrease in income taxes payable Payments on notes payable Cash paid for equipment The following is the summarized income statement for Pizza International, Incorporated (in thousands): 8,730 729 2,741 12,701 29,083 $ 144,551 46,000 98,55 56,885 33,355 7,791 520 80 440 Required: 1. Based on this information, compute cash flow from operating activities using the direct method. Assume Prepaid Expenses and Accrued Liabilities relate to office expenses. 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. 4

Pizza international, incorporated, reported the following information (in thousands) The following is the summarized income statement for Pizza International, incorporated (in thousands) Required: 1. Based on this information, compute cash flow from operating activites using the direct method Assurne Prepaid Expenses and Accrued Liabilites relate to office expenses 2. What wos the primary reaton that Pizza Internotional was able to report large posaive cash flow from operations despite nearly having a net loss? Complete this question by entering your answers in the tabs below