Cash Flows from Operating ActivitiesIndirect Method

Selected data (in thousands) derived from the income statement and balance sheet of National Beverage Corp. for a recent year are as follows:

Income statement data:
Net income	$49,311
Gain on disposal of property	1,188
Depreciation expense	11,580
Other items involving noncash expenses	1,383
Balance sheet data:
Increase in accounts receivable	1,746
Decrease in inventory	990
Increase in prepaid expenses	605
Decrease in accounts payable	710
Decrease in accrued and other current liabilities	995

a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method for National Beverage Corp. 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 operating activities:
	$
Adjustments to reconcile net income to net cash flow from operating activities:
Changes in current operating assets and liabilities:
Net cash flow from operating activities		$

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.