mattel inc designs manufactures and markets toy products worldwide mattel rsquo s to 549680

EX 8-25 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):

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First quarter ending March 31

($214,807)

Second quarter ending June 30

-135,003

Third quarter ending September 30

31,003

Fourth quarter December 31

1,102,915

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

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