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 earnings (loss) ............................................... $43,993

Losses on inventory write-down and fixed assets ............. 7

Depreciation expense ........................................... 10,174

Stock-based compensation expense (noncash) ............... 290

Balance sheet data (in thousands):

Increase in accounts receivable ................................ 5,679

Increase in inventory ............................................ 7,509

Decrease in prepaid expenses ................................. 2,239

Decrease in accounts payable and other current liabilities ... 1,341

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...
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial and Managerial Accounting

ISBN: 978-1285866307

13th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

Question Posted: