Question

Apply a horizontal analysis to this statement of cash flows.

Cash from Operations	20X7	20X6	20X5
Net Income	$1100	$900	$590
Change in Accounts Receivable	(706)	(230)	55
Change in Accounts Payable	150	65	70
Change in Inventory	(50)	15	25
Depreciation	205	100	65
Net Cash from Operations	$699	$850	$805

Cash from Investing	20X5	20X6	20X7
Additions to Property, Plant, & Equipment	$(850)	$(760)	$(861)
Proceeds from Sale of Securities	65	36	15
Net Cash from Investing	$(785)	$(724)	$(846)
Cash from Financing	20X5	20X6	20X7
Long-term Debt Borrowing	$450	$150	$34
Cash Dividends	(140)	(95)	(65)
Net Cash from Financing	$310	$55	$(21)
Increase(decrease)in Cash	$224	$181	$(62)

Answer 1

Answer)

Cash flows from operations	2017($) (A)	2016($) (B)	2015($) (C)	Difference between 2017 and 2015($) (B-C)	Difference between 2017 and 2016($) (A-B)	% of change ((B-C)/C)×100)	% of change ((A-B)/B)×100)
Netincome	1100	900	590	310	200	52.54	22.22
Changes in accounts receivable	(706)	(230)	55	(285)	(476)	(518.18)	(206.96)
Change in payables	150	65	70	(5)	85	(7.14)	130.77
Change in inventory	(50)	15	25	(10)	(65)	(40)	(433.33)
Depreciation	205	100	65	35	105	53.85	205
Net cash flow from operations	699	850	805	45	(151)	5.59	(17.76)
Cash from investing
Additions to property, plant and equipment	(850)	(760)	(861)	101	(90)	11.73	(11.84)
Process from sale of Securities	65	36	15	21	29	140	80.56
Net cash flow from investment	(785)	(724)	(846)	122	(61)	14.42	(8.43)
Cash from financing
Long term debt borrowing	450	150	34	116	300	341.18	300
Cash dividends	(140)	(95)	(65)	(30)	(45)	(46.15)	(47.37)
Net cash from financing	310	55	(21)	76	255	361.9	463.63
Increase(decrease) in cash	224	181	(62)	243	43	391.94	23.76