Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 33

Reporting and Interpreting Cash Flows from Operating Activities from an Analyst's Perspective (Indirect Method)
Pizza International, Inc., operates 700 family restaurants around the world. The company's annual report contained the following information (in thousands):

Required:
1. Based on this information, compute cash flow from operating activities using the indirect method.
2. What were the major reasons that Pizza International was able to report positive cash flow from operations despite having a net loss
3. Of the potential causes of differences between cash flow from operations and net income, which are the most important to financial analysts