Hopewell Corporation Income Statement January 1 to December

Hopewell Corporation Income Statement January 1 to December 31, 2017 amounts in thousands) 6,400 1,280 5,120 640 1,100 600 2,780 80 2,700 1,080 1,620 Revenue Cost of Goods Sold (COGS) Gross Income Sales, General, & Administrative Expenses (SG&A;) Depreciation Expense Other Expenses Earnings Before Interest & Taxes (EBIT) Interest Pre-lax Income Income Taxes Net Income Between January 1 and December 31, 2017: 1. Accounts Receivable decrease by $400,000 2. Accounts Payable decrease by $100,000 3. Gross Property, Plant, & Equipment increase by $7,800,000 4. Long Term Debt increases by $200,000 Assume no other changes What is the Net Cash Flow? Please specify your answer in the same units as the income statement.

Solution

Hopewell Corporation Statement of Cash flows For the year ended December 31, 2017 (amounts in thousands) Cash flow from operating activities: Net Income $ 1,620 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Expense $ 1,100 Accounts Receivable decrease by $ 400 Accounts Payable decrease by $ -100 Net Cash provided by Operating Activities $ 3,020 Cash flow from Investing Activities: Investment in Property,plant and Equipment $ -7,800 Net Cash used in Investing Actiivties $ -7,800 Cash flow from Financing Activities: Increasee in long term debt $ 200 Net Cash provided by financing activities $ 200 Net Cash flow $ -4,580