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Selected data derived from the income statement and balance sheet of National Be

ID: 2487275 • Letter: S

Question

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

1

Income statement data (in thousands):

2

Net earnings (loss)

$43,993.00

3

Losses on inventory write-down and fixed assets

7.00

4

Depreciation expense

10,174.00

5

Stock-based compensation expense (noncash)

290.00

6

Balance sheet data (in thousands):

7

Increase in accounts receivable

5,679.00

8

Increase in inventory

7,509.00

9

Decrease in prepaid expenses

2,239.00

10

Decrease in accounts payable and other current liabilities

1,341.00

Required:

1

Income statement data (in thousands):

2

Net earnings (loss)

$43,993.00

3

Losses on inventory write-down and fixed assets

7.00

4

Depreciation expense

10,174.00

5

Stock-based compensation expense (noncash)

290.00

6

Balance sheet data (in thousands):

7

Increase in accounts receivable

5,679.00

8

Increase in inventory

7,509.00

9

Decrease in prepaid expenses

2,239.00

10

Decrease in accounts payable and other current liabilities

1,341.00

Explanation / Answer

Indirect Method Cash Flow from Operating Activities Net Income 43993 Add: Depreciation 10174 Add: Losses on inventory 7 Add: Compensation Expense 290 Less: Increase in Accounts Receivable -5679 Increase in Inventory -7509 Decrease in Prepaid Expenses 2239 Decrease in Accounts Payable 1341 Cash Flow from Operating Activities 44856

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