Question

Suppose Hopewell Corporation has the following results related to cash flows for 2019:

Net Income of $8,600,000
Decrease in Accounts Payable of $100,000
Decrease in Accounts Receivable of $400,000
Increase in Debt of $200,000
Depreciation Expenses of $1,400,000
Dividends Paid of $700,000
Increase in Inventory of $600,000
Purchases of Property, Plant, & Equipment of $7,800,000
Other Adjustments from Financing Activities of $300,000
Other Adjustments from Investing Activities of -$800,000
Other Adjustments from Operating Activities of $700,000

Create a statement of cash flows with amounts in thousands.

What is the Net Cash Flow?

Note: Financial results are provided in dollars but the income statement units are thousands of dollars.

Please specify your answer in the same units as the statement of cash flows (i.e., enter the number from your completed statement of cash flows).

Answer 1

Statement of Cash Flows - Indirect Approach
	Amount in $	Amount in $
Net Cash flows from operating activities
Net income		$     86,00,000
Adjustments for reconcile the net income to:
Depreciation Expenses	$        14,00,000
Decrease in Account receivable	$           4,00,000
Increase in inventory	$         -6,00,000
Increase in Debt	$           2,00,000
Decrease in Account payable	$         -1,00,000
Other Adjustement of Operating Activities	$           7,00,000
		$     20,00,000
Net cash from operating activities		$ 1,06,00,000
Cash flows from investing activities
Purhcae of Property, Plant & Equipment	$       -78,00,000
Other Adjustment of Investing Activities	$         -8,00,000
Net cash used in investing activities		$   -86,00,000
Cash flows from Financing activities
Other Adjustment from financing Activities	$           3,00,000
Payment of Dividednds	$         -7,00,000
Net cash used in financing activities		$     -4,00,000
Net Cash Flow		$     16,00,000