E12-10 Reporting and Interpreting Cash Flows from Operating Activities from an Analyst's Perspective (Indirect Method) [LO 12-2, LO 12-5]

Pizza International, Inc. operates 700 family restaurants around the world. The companys annual report contained the following information (in thousands):

Operating Activities
Net Loss	$	(9,467	)
Depreciation		33,380
Increase in Receivables		185
Decrease in Inventory		673
Increase in Prepaid Expenses		679
Decrease in Accounts Payable		2,297
Decrease in Accrued Liabilities		734
Increase in Income Taxes Payable		1,891
Payments on Notes Payable		12,706
Cash Paid for Equipment		29,088

Required:
1.	Based on this information, compute cash flow from operating activities using the indirect method. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)

3.	Of the potential causes of differences between cash flow from operations and net income, which are the most important to financial analysts? (Select all that apply.)