Question

Selected data derived from the income statement and balance sheet of Jones Soda Co. for a recent year are as follows:

Income statement data (in thousands):

Net earnings (loss)$(6,106)Losses on inventory write-down and fixed assets379Depreciation expense799Stock-based compensation expense (noncash)830\begin{array}{llr} \text{Net earnings (loss)}&\text{\$(6,106)}\\ \text{Losses on inventory write-down and fixed assets}&\text{379}\\ \text{Depreciation expense}&\text{799}\\ \text{Stock-based compensation expense (noncash)}&\text{830}\\ \end{array}

Balance sheet data (in thousands):

Increase in accounts receivable278Decrease in inventory1,252Decrease in prepaid expenses131Decrease in accounts payable472\begin{array}{llr} \text{Increase in accounts receivable}&\text{278}\\ \text{Decrease in inventory}&\text{1,252}\\ \text{Decrease in prepaid expenses}&\text{131}\\ \text{Decrease in accounts payable}&\text{472}\\ \end{array}

b. Interpret your results in part (a).

Solution

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Answered 10 months ago
Answered 10 months ago
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In this exercise, we are asked to interpret the results of net cash flows from operating activities in item (a).

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