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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 income $49,311 Gain on disposal of property 1,188 Depreciation expense 11,580 Other items involving noncash expense 1,383 Balance sheet data (in thousands): Increase in accounts receivable 1,746 Decrease in inventory 990 Increase in prepaid expenses 605 Decrease in accounts payable and other current liabilities 1,705 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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Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

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Chapter
Section
Chapter 16, Problem 16.16EX
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 income $49,311
Gain on disposal of property 1,188
Depreciation expense 11,580
Other items involving noncash expense 1,383
Balance sheet data (in thousands):  
Increase in accounts receivable 1,746
Decrease in inventory 990
Increase in prepaid expenses 605
Decrease in accounts payable and other current liabilities 1,705

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 16 Solutions

Accounting
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