Question

use the income statement and the list of changes to answer the question. Nippon Technology Income Statement January 1 to December 31, 2017 (amounts in thousands) Revenue 8,700 Cost of Goods Sold (COGS) 1,740 Gross Income 6,960 Sales, General, & Administrative Expenses (SG&A) 870 Depreciation Expense 1,200 Other Expenses 400 Earnings Before Interest & Taxes (EBIT) 4,490 Interest 50 Pre-Tax Income 4,440 Income Taxes 1,776 Net Income 2,664 Between January 1 and December 31, 2017: 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? Please specify your answer in the same units as the income statement.

Answer 1

Cash flow from operating activities:
Net income	2664
Depreciation Expense	1200
Accounts Receivable decrease	600
Accounts Payable increase	800
Net Cash flow from operating activities		5264
Cash flow from investing activities:
Purchase of Property, Plant, & Equipment	-7300
Net Cash flow from investing activities		-7300
Cash flow from financing activities:
Repayment of Long Term Debt	-400
Net Cash flow from financing activities		-400
Net Cash Flow		-2436