Question

Use the income statement and the list of changes to answer the question.

Valley Technology Income Statement January 1 to December 31, 2019 (amounts in thousands)
Revenue	8,200
Cost of Goods Sold (COGS)	2,460
Gross Income	5,740
Sales, General, & Administrative Expenses (SG&A)	1,640
Depreciation Expense	600
Other Expenses	700
Earnings Before Interest & Taxes (EBIT)	2,800
Interest	80
Pre-Tax Income	2,720
Income Taxes	1,088
Net Income	1,632

Between January 1 and December 31, 2019:

1. Accounts Receivable increase by $100,000
2. Accounts Payable decrease by $800,000
3. Gross Property, Plant, & Equipment increase by $5,700,000
4. Long Term Debt decreases by $1,000,000

Assume no other changes

What is the Net Cash Flow?

Please specify your answer in the same units as the income statement.

Answer 1

Valley Technology
Cash Flow Statement
January 1 to December 31, 2019 (in 000's)
Cash Flow from Operating Activities
Net Income	1,632
Add: Depreciation	600
Less: Increase in Accounts Receivable	100
Less: Decrease in Accounts Payable	800
Net Cash Flow from Operating Activities (A)	$1,332
Cash Flow from Investing Activities
Increase in Property, Plant and Equipment	-5,700
Net Cash Flow from Investing Activities (B)	-$5,700
Cash Flow from Financing Activities
Increase in Long Term Debt	-1,000
Net Cash Flow from Financing Activities (C)	$-1,000
Net Cash Flow (A+B+C)	-$5,368