Selected data derived from the income statement and balance sheet of Jones Soda Co. for a recent year are as follows:
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Income statement data (in thousands):
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Net earnings
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$1,330
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Depreciation expense
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193
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Stock-based compensation expense (noncash)
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20
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Balance sheet data (in thousands):
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Increase in accounts receivable
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$1,328
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Increase in inventory
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1,550
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Increase in prepaid expenses
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124
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Increase in accounts payable
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686
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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).