Mattel, Inc., designs, manufactures, and markets toy products worldwide. Mattel's toys includeBarbie® fashion dolls and accessories, Hot Wheels®, and Fisher-Price brands. For a recentyear, Mattel reported the following net cash flows from operating activities (in thousands):$ (53,110)First quarter ending March 31Second quarter ending June 30Third quarter ending September 30Fourth quarter ending December 31(187,663)18,435956,895Explain why Mattel reported negative net cash flows from operating activi-ties during the first and second quarters and a large positive cash flow for the fourthquarter, with overall net positive cash flow for the year.

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Asked Dec 15, 2019
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Mattel, Inc., designs, manufactures, and markets toy products worldwide. Mattel's toys include
Barbie® fashion dolls and accessories, Hot Wheels®, and Fisher-Price brands. For a recent
year, Mattel reported the following net cash flows from operating activities (in thousands):
$ (53,110)
First quarter ending March 31
Second quarter ending June 30
Third quarter ending September 30
Fourth quarter ending December 31
(187,663)
18,435
956,895
Explain why Mattel reported negative net cash flows from operating activi-
ties during the first and second quarters and a large positive cash flow for the fourth
quarter, with overall net positive cash flow for the year.
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Mattel, Inc., designs, manufactures, and markets toy products worldwide. Mattel's toys include Barbie® fashion dolls and accessories, Hot Wheels®, and Fisher-Price brands. For a recent year, Mattel reported the following net cash flows from operating activities (in thousands): $ (53,110) First quarter ending March 31 Second quarter ending June 30 Third quarter ending September 30 Fourth quarter ending December 31 (187,663) 18,435 956,895 Explain why Mattel reported negative net cash flows from operating activi- ties during the first and second quarters and a large positive cash flow for the fourth quarter, with overall net positive cash flow for the year.

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Cash and cash equivalents: Cash is the money readily available in the form of currency. Cash equivalents are the near-cash items, which are readily convertible into cash. Cash equivalents have a maturity period of three months, or less than 3 months.

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T manufacturers and retailers have experienced seasonal trend in the cash flows received from the operating activities of the company. M Incorporation experience a negative cash flow during the period and when merchandise inventory is ordered and being produced for a holiday season. M Incorporation generate a very large positive cash flows during holiday season (November and December). Thus, on the whole, M reports overall positive net cash flows from the operating activities for the year.

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