Selected data derived from the income statement and balance sheet of National Be
ID: 2550288 • 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 income
$43,993.00
3
Depreciation expense
10,651.00
4
Losses on inventory write-down and fixed assets
7.00
5
Other noncash items
(187.00)
6
Balance sheet data (in thousands):
7
Increase in accounts receivable
5,679.00
8
Increase in inventory
7,509.00
9
Increase 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 income
$43,993.00
3
Depreciation expense
10,651.00
4
Losses on inventory write-down and fixed assets
7.00
5
Other noncash items
(187.00)
6
Balance sheet data (in thousands):
7
Increase in accounts receivable
5,679.00
8
Increase in inventory
7,509.00
9
Increase in prepaid expenses
2,239.00
10
Decrease in accounts payable and other current liabilities
1,341.00
Explanation / Answer
a
a
Cash flows from operating activities: Net Income 43993 Adjustments to reconcile net income to net cash fow from operating activities: Depreciation expense 10651 Other non cash items 187 Losses on inventory write-down and fixed assets 7 Changes in current operating assets and liabilities: Increase in accounts receivable -5679 Increase in inventory -7509 Decrease in prepaid expenses 2239 Decrease in accounts payable and other current liabilities -1341 Net cash flows from operating activities 42548 b The company has positive net cash flwo from operating activities,increase in assets is not so high and the payables were not high, hence there is positive result