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).