Dansko Integrated had Net Income for 2017 of $7,800,000. The firm invested $4,000,000 in manufacturing equipment during 2017. The equipment is being depreciated over five years using straight-line depreciation, starting in 2017. Assuming no other adjustments to cash flow than those mentioned here, create a statement of cash flows for 2017 with amounts in thousands. What is the Net Cash Flow in 2017? Please specify your answer in the same units as the statement of cash flows.
Solution:
| Dansko | ||
| Statement of Cash Flows | ||
| For the year ended 2017 (In '000) | ||
| Particulars | Details | Amount |
| Cash Flow from Operating Activities: | ||
| Net Income | $7,800.00 | |
| Adjustments to reconcile net income to net cash provided by operations: | ||
| Depreciation Expense ($4,000/5) | $800.00 | |
| Net Cash provided (used) by operating activities | $8,600.00 | |
| Cash Flow from Investing Activities: | ||
| Purchase of manufacturing equipment | -$4,000.00 | |
| Net Cash provided (used) in Investing activities | -$4,000.00 | |
| Cash Flow from Financing Activities: | $0.00 | |
| Net cash flow in 2017 | $4,600.00 | |
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