Required:

1. Based on this information, compute cash flow from operating activities using the Indirect Method.
2. What were the major reasons that Sizzler was able to report a net loss but positive cash flow from operations? Why are the reasons for the difference between cash flow from operations and net income important to financial analysts?

Sizzler International. Inc. opcrates 700 family restaurants around the world. The company's rc nual report contained the following information (dollars in thousands) Ir S (9,482) 33,305 Net loss Deprcciation und arnortization Increase in reccivabies Decrease in inventories lncrease in prepaid ex penses - Decrease in accounts payabie Decrease in accrued liabilities Increase in inccme taxes payable Reduction of long-term debt Additions to equipment 170 643 664 2,282 719 1.861 12.691 29,073