Selected data (in thousands) derived from the income statement and balance sheet of National Beverage Co. for a recent year are as follows:

1	Income statement data:
2	Net income	$49,311.00
3	Gain on disposal of property	1,188.00
4	Depreciation expense	11,580.00
5	Other items involving noncash expenses	1,383.00
6	Balance sheet data:
7	Increase in accounts receivable	1,746.00
8	Decrease in inventory	990.00
9	Increase in prepaid expenses	605.00
10	Decrease in accounts payable	710.00
11	Decrease in accrued and other current liabilities	995.00

Required:

	a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method for National Beverage Corp. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.
	b. Interpret your results in part (a).

Amount Descriptions

Amortization of intangible assets

Decrease in accounts payable

Decrease in accounts receivable

Decrease in accrued and other current liabilities

Decrease in inventory

Decrease in prepaid expenses

Depreciation

Gain on disposal of property

Increase in accounts payable

Increase in accrued and other current liabilities

Increase in accounts receivable

Increase in inventory

Increase in prepaid expenses

Losses on disposal of property

Net cash flow from operating activities

Net cash flow used for operating activities

Net income

Net loss

Other items involving noncash expenses

a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method for National Beverage Corp. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.

National Beverage Co.

Cash Flows from Operating Activities (in thousands)

1	Cash flows from operating activities:
2
3	Adjustments to reconcile net loss to net cash flow from operating activities:
4
5
6
7	Changes in current operating assets and liabilities:
8
9
10
11
12
13

b. Interpret your results in part (a).

The company has earnings and net cash flow from operating activities. The increase in accounts receivable indicates a(n) in sales. In addition, the company is using its cash to decrease its accounts payable balance, which indicates that the company is . Overall, National Beverage is doing financially.