Pizza International, Inc., reported the following information (in thousands):

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?

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Operating Activities Net Income $ 100 Decrease in accounts payable $ 8,720 Increase in accrued liabilities Depreciation Increase in recelvables Decrease in inventory 33,305 719 170 Decrease in income taxes payable Payments on notes payable Cash pald for equipment 2,721 643 12,691 Increase in prepaid expenses 664 29,073