Cash Flows from Operating ActivitiesIndirect Method

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	$149,774
Loss on disposal of property	(149)
Depreciation expense	13,226
Other items involving noncash expense	837
Balance sheet data (in thousands):
Increase in accounts receivable	13,041
Increase in inventory	7,565
Increase in prepaid expenses	10,548
Increase in accounts payable and other current liabilities	17,464

a. 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:
		$fill in the blank 41dfed027fb000b_2
Adjustments to reconcile net income to net cash flows from (used for) operating activities:
	fill in the blank 41dfed027fb000b_4
	fill in the blank 41dfed027fb000b_6
	fill in the blank 41dfed027fb000b_8
Changes in current operating assets and liabilities:
	fill in the blank 41dfed027fb000b_10
	fill in the blank 41dfed027fb000b_12
	fill in the blank 41dfed027fb000b_14
	fill in the blank 41dfed027fb000b_16
Net cash flows from operating activities		$fill in the blank 41dfed027fb000b_17

b. 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.