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Cash flows from operating activities—indirect method Selected data derived from the income statement and balance sheet of National Beverage Co. for a recent year are as follows: Income statement data (in thousands): Net earnings (loss) $43,993 Losses on inventory write-down and fixed assets 7 Depreciation expense 10,174 Stock-based compensation expense (noncash) 290 Balance sheet data (in thousands): Increase in accounts receivable 5,679 Increase in inventory 7,509 Decrease in prepaid expenses 2,239 Decrease in accounts payable and other current liabilities 1,341 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method for National Beverage Co. b. Interpret your results in part (a).

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Financial & Managerial Accounting

13th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285866307
BuyFind

Financial & Managerial Accounting

13th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285866307

Solutions

Chapter
Section
Chapter 14, Problem 14.16EX
Textbook Problem

Cash flows from operating activities—indirect method

Selected data derived from the income statement and balance sheet of National Beverage Co. for a recent year are as follows:

Income statement data (in thousands):  
Net earnings (loss) $43,993
Losses on inventory write-down and fixed assets 7
Depreciation expense 10,174
Stock-based compensation expense (noncash) 290
Balance sheet data (in thousands):  
Increase in accounts receivable 5,679
Increase in inventory 7,509
Decrease in prepaid expenses 2,239
Decrease in accounts payable and other current liabilities 1,341

a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method for National Beverage Co.

b. Interpret your results in part (a).

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Chapter 14 Solutions

Financial & Managerial Accounting
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