Question

Suppose Lightspeed Industries has the following results related to cash flows for 2017: Net Income of $9,200,000 Increase in Accounts Payable of $700,000 Increase in Accounts Receivable of $500,000 Decrease in Debt of $400,000 Depreciation Expenses of $1,500,000 Dividends Paid of $800,000 Decrease in Inventory of $400,000 Purchases of Property, Plant, & Equipment of $9,400,000 Other Adjustments from Financing Activities of $600,000 Other Adjustments from Investing Activities of $300,000 Other Adjustments from Operating Activities of $100,000 Create a statement of cash flows with amounts in thousands. What is the Net Cash Flow? Please specify your answer in the same units as the statement of cash flows.

Answer 1

• Amount in $ thousand

Statement of Cash Flows
for the period ending 31 Dec 2017
Cash Flows from Operating activities:
Net Income	$9,200
Adjustment to reconcile net income to cash flow from operating activities:
Increase in accounts payable	$700
Increase in accounts receivables	($500)
Depreciation expense	$1,500
Decrease in Inventory	$400
Other adjustment from Operating activities	$100
Net Cash flows from Operating activities		$11,400
Cash Flows from Investing activities:
Purchase of PPE	($9,400)
Other adjustments from Investing activities	$300
Net Cash flows from Investing activities		($9,100)
Cash Flows from Financing activities:
Decrease in Debt	($400)
Dividend paid	($800)
Other adjustment from Financing activities	$600
Net Cash flows from Financing activities		($600)
Net Cash Flow		$1,700 = Answer

• Answer: Net Cash Flow = $ 1,700 (thousand)