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):
|
First quarter ending March 31, 2005 |
$(374,933) |
|
Second quarter ending June 30, 2005 |
(551,080) |
|
Third quarter ending September 30, 2005 |
(629,006) |
|
Year ending December 31, 2005 |
466,677 |
Explain how Mattel can report negative net cash flows from operating activities during the first three quarters yet report net positive cash flows on December 31.