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 $1,900,000
Purchases of Property, Plant, & Equipment of $7,800,000

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?

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

Hopewell Corporation
Cash Flow Statement (Partial)
Cash flows from operating activities:
Net Income	8,600,000
Adjustments to reconcile net loss to net cash flow from operating activities:
Depreciation expense	1,900,000
Changes in current operating assets and liabilities:
Decrease in accounts receivable	400,000
Decrease in accounts payable	(100,000)
Net Cash provided by operating activities:		10,800,000
Cash Flow from Investing Activities
Purchases of Property, Plant, & Equipment		(7,800,000)
Cash Flow from Financing Activities
Increase in Debt		200,000
Net Cash Flow		3,200,000