EX 16-16 Jones Soda Co Selected data derived from the income statement and balance sheet of Jones Soda Co. for a recent year are as follows

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

EX 16-16 Jones Soda Co

ACCOUNTING Warren, Reeve and Duchac

Chapter 16

EX 16-16 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 $4,574

Depreciation expense 256

Stock-based compensation expense (noncash) 1,196

Balance sheet data (in thousands):

Increase in accounts receivable $3,214

Increase in inventory 1,089

Increase in prepaid expenses 566

Increase in accounts payable 1,891

a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows using the

indirect method for Jones Soda Co. for the year.

b. Interpret your results in part (a).

ANSWER KEY

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