mattel inc designs manufactures and markets toy products worldwide mattel rsquo s to 546001

EX 7-25 Variation in cash flows

Mattel, Inc., designs, manufactures, and markets toy products worldwide. Mattel’s toys include Barbie™ fashion dolls and accessories, Hot Wheels™, and Fisher-Price brands.

For a recent year, Mattel reported the following net cash flows from operating activities (in thousands):

Explain why Mattel reported negative net cash flows from operating activities during the first three quarters and a large positive cash flow for the fourth quarter, with overall net positive cash flow for the year.