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.
Statement of net cash flow
|S.no||Particulars||Amount in thousands|
|1||cash flow from operating activities :-|
|Net income before taxes||3770|
|change in operating assets & liabilities|
|add:- decrease in accounts receivable||300|
|less:- decrease in accounts payable||900|
|cash generated from operations||4180|
|less :- income tax paid||1508|
|net cash flow from operating activities -(A)||2672|
|2.||cash flow from investing activities|
|Payment for Property ,Plant & Equipment||7500|
|net cash outflow from investing activities -(B)||(7500)|
|3.||cash flow from financing activities|
|Repayment of long term Debt||(600)|
|net cash outflow from financing activities -(C)||600|
|Net Cash Flow -||(5428)|
Get Answers For Free
Most questions answered within 1 hours.