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Pizza International, Inc., reported the following information (in thousands): Operating Activities ...

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Accounting

Pizza International, Inc., reported the following information (in thousands):

Operating Activities
Net Income $ 115
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

Required:

  1. Based on this information, compute cash flow from operating activities using the indirect method.
  2. 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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