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	$49,270
Gain on disposal of property	1,170
Depreciation expense	11,570
Other items involving noncash expenses	1,375
Balance sheet data:
Increase in accounts receivable	1,730
Decrease in inventory	945
Increase in prepaid expenses	555
Decrease in accounts payable	755
Decrease in accrued and other current liabilities	960

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 outflows, 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 882b630c4ffb064_2
Adjustments to reconcile net income to net cash flow from operating activities:
	fill in the blank 882b630c4ffb064_4
	fill in the blank 882b630c4ffb064_6
	fill in the blank 882b630c4ffb064_8
Changes in current operating assets and liabilities:
	fill in the blank 882b630c4ffb064_10
	fill in the blank 882b630c4ffb064_12
	fill in the blank 882b630c4ffb064_14
	fill in the blank 882b630c4ffb064_16
	fill in the blank 882b630c4ffb064_18
Net cash flow from operating activities		$fill in the blank 882b630c4ffb064_19

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.