Use the income statement and the list of changes to answer the question.
January 1 to December 31, 2019
(amounts in thousands)
|Cost of Goods Sold (COGS)||1,740|
|Sales, General, & Administrative Expenses (SG&A)||870|
|Earnings Before Interest & Taxes (EBIT)||4,490|
Between January 1 and December 31, 2019:
1. Accounts Receivable decrease by $600,000
2. Accounts Payable increase by $800,000
3. Gross Property, Plant, & Equipment increase by $7,300,000
4. Long Term Debt decreases by $400,000
Assume no other changes
What is the Net Cash Flow?
Note: Account change amounts are provided in dollars but the financial statement units are thousands of dollars.
Please specify your answer in the same units as the financial statements (i.e., enter the number from your completed statement of cash flows).
Pre tax income 4440
Imtrest paid 50
Cash flow before working capital =5690
Increase in trade payables. 800
Decrese in trade receivables. 600
Taxes paid. (1776)
Cash flow from operating activities. 5314(A)
Cash flow from investment activities
Plant and machinery. (7300)
Cash flow from investment activities (7300)B
Cash flow from financing activities
Decrease in debt. (400)
Int paid. (50)
Cash flow from financing activities (450)C
Net cash flow = A+B+C=(2436)
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