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$149,774
Loss on disposal of property(149)
Depreciation expense13,226
Other items involving noncash expense837
Balance sheet data (in thousands):
Increase in accounts receivable13,041
Increase in inventory7,565
Increase in prepaid expenses10,548
Increase in accounts payable and other current liabilities17,464
a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method for National Beverage Co.
b. The company has earnings and net cash flow from operating activities. The increase in accounts receivable indicates a(n) in sales. In addition, the company is using its cash to decrease its accounts payable balance, which indicates that the company is . Overall, National Beverage is doing financially.