Gulf Shipping Company Income Statement January 1 to December 31, 2018 (amounts in thousands) Revenue 9,000...

Gulf Shipping Company Income Statement January 1 to December 31, 2018 (amounts in thousands)
Revenue	9,000
Cost of Goods Sold (COGS)	3,600
Gross Income	5,400
Sales, General, & Administrative Expenses (SG&A)	900
Depreciation Expense	1,000
Other Expenses	400
Earnings Before Interest & Taxes (EBIT)	3,100
Interest	120
Pre-Tax Income	2,980
Income Taxes	1,192
Net Income	1,788

Between January 1 and December 31, 2018:

1. Accounts Receivable decrease by $200,000
2. Accounts Payable increase by $500,000
3. Gross Property, Plant, & Equipment increase by $8,500,000
4. Long Term Debt increases by $900,000

Assume no other changes

What is the Net Cash Flow?

Expert Solution

Ans:

Net Cash Flow Decrease by $4112 Thousands

Gulf Shipping Company
Cash Flow Statement
For the Year ended December 31, 2018
Cash Flow from Operating Activities:
Net Income		$ 1788.00
Add: Adjustments
Depreciation expense	$ 1000.00
Increase in Accounts Payables	$ 500.00
Decrease in Accounts receivables	$ 200.00
		$ 1700.00
A. Cash Flow from Operating Activities		$ 3,488.00

Cash Flow from Investing Activities:
Purchase of Property, Plant, & Equipment	$ (8,500.00)
B. Cash flow from Investing Activities		$ (8,500.00)

Cash Flow from Financing Activities:
Cash from long term debts	$ 900.00
C. Cash Flow from Financing Activities		$ 900.00

D. Net cash flow (A+B+C)		$ (4,112.00)

ekkarill92 answered 2 years ago

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