Question

Use the income statement and the list of changes to answer the question.

Siam Traders Income Statement January 1 to December 31, 2018 (amounts in thousands)
Revenue	7,800
Cost of Goods Sold (COGS)	1,560
Gross Income	6,240
Sales, General, & Administrative Expenses (SG&A)	780
Depreciation Expense	1,200
Other Expenses	300
Earnings Before Interest & Taxes (EBIT)	3,960
Interest	60
Pre-Tax Income	3,900
Income Taxes	1,560
Net Income	2,340

Between January 1 and December 31, 2018:

1. Accounts Receivable increase by $100,000
2. Accounts Payable increase by $600,000
3. Gross Property, Plant, & Equipment increase by $8,300,000
4. Long Term Debt decreases by $700,000

Assume no other changes

What is the Net Cash Flow?

Please specify your answer in the same units as the income statement.

Answer 1

Net Cash flow s (4,960) Working Notes: $ 2,340 Siam Traders Statement of Cash flows For the Year Ending December. 31,2018 Cash flows from Operating Activities: Net Income Adjustments to reconcile Net Income to Net Cash Provided by Operating activities Depreciation expenses $ 1,200 Accounts receivable increase $ (100) Accounts payable Increase $ 600 Net Cash flow from operating activities Cash Flows from Investing Activities Purchase of Equipment (8.300) Net Cash flow from Investing activities Cash Flows from Financing Activities Repayment of long Term Debt (700) Net Cash flow from Financing activities Net Decrease in Cash $ $ 1,700 4,040 S (8,300) $ $ (700) (4,960)