Question

Suppose Dansko Integrated has the following results related to cash flows for 2018:

Decrease in Debt of $200,000
Dividends Paid of $800,000
Purchases of Property, Plant, & Equipment of $6,700,000
Other Adjustments from Financing Activities of -$600,000
Other Adjustments from Investing Activities of $300,000

Assuming no other cash flow adjustments than those listed above, create a statement of cash flows for investing and financing activities with amounts in thousands.

What is the Net Cash Flow from Investing and Financing Activities?

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

Suppose Siam Traders has the following results related to cash flows for 2018:

Net Income of $7,200,000
Increase in Accounts Payable of $600,000
Increase in Accounts Receivable of $100,000
Decrease in Debt of $700,000
Depreciation Expenses of $1,500,000
Purchases of Property, Plant, & Equipment of $8,300,000

Assuming no other cash flow adjustments than those listed above, 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

1.

Cash flow Statement
Cash flow from investing activities	Amounts (in $ '000)	Amounts (in $ '000)
Purchases of Property, Plant, & Equipment	($6,700)
Adjustments from Investing Activities	$300
Cash from investing activities		($6,400)
Cash flow from financing activities
Decrease in Debt	($200)
Dividends Paid	($800)
Adjustments from Financing Activities	$600
Cash from financing activities		($400)
Net cash flow		($6,800)

2.

Siam Traders
Statement of Cash Flows
	Amounts (in $ '000)	Amounts (in $ '000)
Cash flows from operating activities;
Net Income		$7,200
Adjustment to reconcile net income to net cash flow:
Add : Depreciation expense	$1,500
Changes in current assets & current liabilities;
Add : Increase in Accounts Payable	$600
Less : Decrease in Accounts Receivable	($100)	$2,000
Net cash inflows from operating activities		$9,200
Cash flows from financing activities:
Decrease in Debt	($700)
Net cash outflows from financing activities		($700)
Cash flows from investing activities:
Purchases of Property, Plant, & Equipment	($8,300)
Net cash outflows from investing activities		($8,300)
Net cash flows		$200