Net cash flow from operating activities, $(3,465) Selected data derived from the
ID: 2489527 • Letter: N
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)