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Business, 17.12.2019 06:31 moeshawashingto1

Pizza international, inc., reported the following information (in thousands): operating activities net income $ 610 depreciation 33,380 increase in receivables 185 decrease in inventory 673 increase in prepaid expenses 679 decrease in accounts payable 8,735 increase in accrued liabilities 734 decrease in income taxes payable 2,751 payments on notes payable 12,706 cash paid for equipment 29,088 the following summarized income statement for pizza international, inc. (in thousands): revenues $ 145,051 cost of sales 46,250 gross profit 98,801 salary and wages expense 56,910 depreciation 33,380 office expenses 7,796 net income before income tax expense 715 income tax expense 105 net income $ 610 required: based on this information, compute cash flow from operating activities using the direct method. assume prepaid expenses and accrued liabilities relate to office expenses. what was the primary reason that pizza international was able to report large positive cash flow from operations despite nearly having a net loss

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