Net cash flow from operating activities, $(3,465) Selected data derived from the

Question

Net cash flow from operating activities, $(3,465)

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

Income statement data (in thousands):

   Net earnings (loss)

$(6,106)

   Losses on inventory write-down and fixed assets

379

   Depreciation expense

799

   Stock-based compensation expense (noncash)

830

Balance sheet data (in thousands):

   Increase in accounts receivable

278

   Decrease in inventory

1,252

   Decrease in prepaid expenses

131

   Decrease in accounts payable

472

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

Income statement data (in thousands):

   Net earnings (loss)

$(6,106)

   Losses on inventory write-down and fixed assets

379

   Depreciation expense

799

   Stock-based compensation expense (noncash)

830

Balance sheet data (in thousands):

   Increase in accounts receivable

278

   Decrease in inventory

1,252

   Decrease in prepaid expenses

131

   Decrease in accounts payable

472

Explanation / Answer

Indirect method:

Net earning(loss) (6,106) Add: Depreciation expense 799 Stock based compensation expense 830 Loss on inventory write downs and fixed assets 379 Decrease in inventory 1252 Decrease in prepaid expense 131 Less: Decrease in accounts payable 472 Increase in accounts receivable 278 2641 Net cash flow from operating activitiies $(3465)

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