Nippon Technology Income Statement January 1 to December 31

Nippon Technology Income Statement January 1 to December 31, 2017 amounts in thousands) Revenue 8,700 1,740 6,960 870 1,200 400 4,490 50 4,440 1,776 2,664 Cost of Goods Sold (COGS) Gross Income Sales, General, & Administrative Expenses (SG&A;) Depreciation Expense Other Expenses Earnings Before Interest & Taxes (EBIT) Interest Pre-Tax Income Income Taxes Net Income 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.

Solution

Cash Flow Statement

Nippon Technology

For the year ended 31-12-2017 (in thousands)

Net Sales

8700

Add : Decrease in Accounts Receivables

600

Cash collected from sales

9300

Less : Cost of goods sold (COGS)

(1,740)

Add : Increase in Accounts Payable

800

CASH FROM TRADING ACTIVITIES

8360

Less : Sales, General and Administrative Exp

(870)

Less : Depreciation Expense

(1200)

Less : Other Expenses

(400)

Cash after Operations

5890

Add : Income Taxes Paid

1,776

Net Cash From Operations

7,666

Less : Interest Paid

(50)

NET CASH INCOME

7,616

Cash Flow from Investing Activities:

Increase in Property, Plant And Equipment

(7300)

Net Cash used by investing activities

(7300)

Cash Flow from Financing Activities :

Decrease of long term debts

(400)

Net Cash used by financing activities

(400)

Net Decrease in Cash

(84)

Net Sales	8700
Add : Decrease in Accounts Receivables	600
Cash collected from sales		9300
Less : Cost of goods sold (COGS)	(1,740)
Add : Increase in Accounts Payable	800
CASH FROM TRADING ACTIVITIES		8360
Less : Sales, General and Administrative Exp	(870)
Less : Depreciation Expense	(1200)
Less : Other Expenses	(400)
Cash after Operations		5890
Add : Income Taxes Paid	1,776
Net Cash From Operations		7,666
Less : Interest Paid	(50)
NET CASH INCOME		7,616
Cash Flow from Investing Activities:
Increase in Property, Plant And Equipment	(7300)
Net Cash used by investing activities		(7300)
Cash Flow from Financing Activities :
Decrease of long term debts	(400)
Net Cash used by financing activities		(400)
Net Decrease in Cash		(84)