Question

Siam Traders had Net Income for 2018 of $9,500,000.

The firm invested $1,000,000 in manufacturing equipment during 2018.
The equipment is being depreciated over five years using straight-line depreciation, starting in 2018.

Assuming no other adjustments to cash flow than those mentioned here, create a statement of cash flows for 2018 with amounts in thousands.

What is the Net Cash Flow in 2018?

Please specify your answer in the same units as the statement of cash flows.

Answer 1

Answer;

Siam Traders
Cash flow statement
For the year ended December 31,2018
(Amount in thousands)
Cash flows from operating activities:
Net income	$9,500
Adjustments:
Depreciation expense (1,000 ÷ 5)	$200
Net cash flow provided (used) by operating activities		$9,700
Cash flows from investing activities:
Acquisition of manufacturing equipment		($1,000)
Cash flows from financing activities		$0
Net increase (decrease) in cash		$8,700