Cash flows from operating activities

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	$143,204
Loss on disposal of property	(119)
Depreciation expense	13,805
Other items involving noncash expense	832
Balance sheet data (in thousands):
Increase in accounts receivable	12,125
Increase in inventory	6,743
Increase in prepaid expenses	10,549
Increase in accounts payable and other current liabilities	16,258

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

1. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method for National Beverage Co. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Enter the amounts in thousands of dollars, as shown above.

   National Beverage Co.
   Cash Flows from Operating Activities
   (in thousands)
   Cash flows from (used for) operating activities:
   Increase in prepaid expenses/Increase in accounts receivable/Net income/Net loss		$fill in the blank 3
   Adjustments to reconcile net income to net
   cash flows from (used for) operating activities:
   Decrease in accounts payable and other current liabilities/Decrease in accounts receivable/Depreciation expense/Increase in accounts receivable	fill in the blank 5
   Decrease in accounts receivable/Decrease in inventory/Gain on disposal of property/Loss on disposal of property	fill in the blank 7
   Decrease in accounts payable and other current liabilities/Decrease in accounts receivable/Increase in accounts receivable/Other items involving noncash expense	fill in the blank 9
   Changes in current operating assets and liabilities:
   Depreciation expense/Increase in accounts receivable/Loss on inventory write-down and fixed assets/Net loss	fill in the blank 11
   Depreciation expense/Decrease in inventory/Increase in inventory/Gain on disposal of property	fill in the blank 13
   Increase in prepaid expenses/Depreciation expense/Other items involving noncash expense/Gain on disposal of property	fill in the blank 15
   Decrease in accounts payable and other current liabilities/Increase in accounts payable and other current liabilities/Net income/Gain on disposal of property	fill in the blank 17
   Net cash flows from operating activities		$fill in the blank 18

3. The company has

   negative/positive

   earnings and

   negative/positive

   net cash flow from operating activities. The increase in accounts receivable indicates a(n)

   decrease/increase

   in sales. In addition, the company is using its cash to decrease its accounts payable balance, which indicates that the company is

   falling behind in its payments to vendors/generating enough cash from operations to pay for its inventory in cash

   . Overall, National Beverage is doing

   poorly/well

   financially.