Use the income statement and the list of changes to answer the question.
January 1 to December 31, 2017
(amounts in thousands)
|Cost of Goods Sold (COGS)||2,640|
|Sales, General, & Administrative Expenses (SG&A)||880|
|Earnings Before Interest & Taxes (EBIT)||3,880|
Between January 1 and December 31, 2017:
1. Accounts Receivable decrease by $300,000
2. Accounts Payable decrease by $900,000
3. Gross Property, Plant, & Equipment increase by $7,500,000
4. Long Term Debt decreases by $600,000
Assume no other changes
What is the Net Cash Flow?
Please specify your answer in the same units as the income statement.
|Amounts in thousands|
|Cash flow from operating activities:|
|Adjustments to convert to cash basis:|
|Decrease in accounts receivable||300|
|Decrease in accounts payable||-900||300|
|Net cash flow from operating activities||2562|
|Cash flow from investing activities:|
|Purchase of property, plant & equipment||-7500|
|Cash flow from financing activities:|
|Payment of long-term debt||-600|
|Net cash flow||-5538|
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