Operating Activities Net Income Depreciation Increase in receivables Decrease in inventory Increase in prepaid expenses Decrease in accounts payable Increase in accrued liabilities Decrease in income taxes payable Payments on notes payable Cash paid for equipment $ 780 33,405 190 683 684 8,740 739 2,761 12,711 29,093 The following summarized income statement for Pizza International, Inc. (in thousands): Revenues Cost of Sales Gross Profit Salary and Wages Expense Depreciation Office Expenses Net Income before Income Tax Expense Income Tax Expense Net Income $145,551 46,500 99,051 56,935 33,405 7,881 910 130 $ 780 Required: 1. Based on this information, compute cash flow from operating activities using the direct method. Assume Prepaid Expense Accrued Liabilities relate to office expenses. 2. What was the primary reason that Pizza International was able to report large positive cash flow from operations despiten having a net loss? Net Income before Income Tax Expense Incone Tax Expense Net Income 910 130 Required: 1. Based on this information, compute cash flow from operating activities using the direct method. Assume Prepaid Expenses and Accrued Liabilities relate to office expenses. 2. What was the primary reason that Pizza International was able to report large positive cash flow from operations despite nearly having a net loss? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Based on this information, compute cash flow from operating activities using the direct method. Assume Prepaid Expenses and Accrued Liabilities relate to office expenses. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.) PIZZA INTERNATIONAL, INC Cash Flows from Operating Activities-Direct Method $ 780 X Depreciation (33,405) Increase in Accounts Receivable (190) Decrease in Inventory 683 X Increase in Prepaid Expenses (684) Decrease in Accounts Payable (8,740) $ (41,556) Required 25