Selected data derived from the income statement and balance sheet of National Beverage Co. for a recent

Question:

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

Income statement data (in thousands):

Net income..................................................................$49,311

Gain on disposal of property................................................1,188

Depreciation expense........................................................11,580

Other items involving noncash expense.....................................1,383

Balance sheet data (in thousands):

Increase in accounts receivable.............................................1,746

Decrease in inventory...........................................................990

Increase in prepaid expenses...................................................605

Decrease in accounts payable and other current liabilities..............1,705

a. Prepare the Cash flows from operating activities section of the statement of cash flows, using the indirect method for National Beverage Co.

b. Interpret your results in part (a).

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...