Changes in current operating assets and liabilities:

Determine how each item would affect cash. When dealing with the adjustments to reconcile net loss to net cash flow from operating activities, consider what the

journal entry would be to record these transactions. How would they have affected net income versus cash?

b$.$ The company has.

: earnings and

inet cash flows from operating activities. The increase in accounts receivable indicates $a(n)$

$$

$$ Check My Work

Determine how each item would affect cash. When dealing with the adjustments to reconcile net loss to net cash flow from operating activities, consider what the

journal entry would be to record these transactions. How would they have affected net income versus cash?

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.

Feedback

Check My Work

Review earnings and the decreases and losses in the accounts that affect cash flows. What do these mean in terms of the financial health of the company?

Feedback

$7$ Check My Work

Partially correctSelected data $($in thousands$)$ derived from the income statement and balance sheet of Cardinas Corp. for a recent year are as follows:

Income statement data:

Line Item Description Amount

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:

Line Item Description Amount

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 $995$

Question Content Area

a$.$ Prepare the $$Cash flows from $($used for$)$ operating activities$$ section of the statement of cash flows, using the indirect method for Cardinas 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.

Cardinas Corp.

Cash Flows from Operating Activities

$($in thousands$)$

Line Item Description Amount Amount

Cash flows from $($used for$)$ operating activities:

$$-$ Select $-$

blank

Adjustments to reconcile net income to net cash flows from $($used for$)$ operating activities:

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Changes in current operating assets and liabilities:

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

blank

$-$ Select $-$

$$-$ Select $-$

Question Content Area

b$.$ The company has fill in the blank $1$ of $5$

earnings and fill in the blank $2$ of $5$

net cash flows from operating activities. The increase in accounts receivable indicates a$($n$)$ fill in the blank $3$ of $5$

in sales. In addition, the company is using its cash to decrease its accounts payable balance, which indicates that the company is fill in the blank $4$ of $5$

$.$ Overall, National Beverage is doing fill in the blank $5$ of $5$

financially.