Hmm, I'm afraid I still don't understand how JJSF is paying down its current liabilities. Even if you don't have to pay them off in full at the end of each year, you'll still have to pay them eventually, yeah? And when your business creates new current liabilities, you'll have to pay that down too. Just from a mathematical standpoint, I don't see how that's possible when the amount of cash flowing into the company every year is less than the money the company owes each year for three consecutive years.
Maybe there's something really obvious I'm missing? The only thing I can think of is that current liabilities is already factored into operating expenses, so the cost of paying them is already incorporated into the income statement. Hence net operating cash flow is already discounted the amount of the period's current liabilities. Could this be the case?