Question

Suppose Siam Traders has the following results related to cash flows for 2019:

Net Income of $7,200,000
Increase in Accounts Payable of $600,000
Increase in Accounts Receivable of $100,000
Decrease in Debt of $700,000
Depreciation Expenses of $1,500,000
Purchases of Property, Plant, & Equipment of $8,300,000

Assuming no other cash flow adjustments than those listed above, create a statement of cash flows with amounts in thousands.

What is the Net Cash Flow?

Note: Financial results are provided in dollars but the income statement units are thousands of dollars.

Please specify your answer in the same units as the statement of cash flows (i.e., enter the number from your completed statement of cash flows).

Answer 1

Statement of cash flow (In thousands)

Cash flow from operating activities :
Net income	7,200
Depreciation expense	1,500
Accounts receivable increase	-100
Accounts payable increase	600
Net cash flow from operating activities		9,200
Cash flow from investing activities :
Purchases of Property, Plant, & Equipment	-8,300
Net cash used in investing activities		-8,300
Cash flow from financing activities :
Decrease in debt	-700
Net cash used in financing activities		-700
Net cash flow		$200