Question
Use the income statement and the list of changes to answer the question. Torche Corporation Income Statement January 1 to December 31, 2019 (amounts in
Use the income statement and the list of changes to answer the question.
Torche Corporation Income Statement January 1 to December 31, 2019 (amounts in thousands) | |
---|---|
Revenue | 9,100 |
Cost of Goods Sold (COGS) | 2,730 |
Gross Income | 6,370 |
Sales, General, & Administrative Expenses (SG&A) | 910 |
Depreciation Expense | 500 |
Other Expenses | 600 |
Earnings Before Interest & Taxes (EBIT) | 4,360 |
Interest | 180 |
Pre-Tax Income | 4,180 |
Income Taxes | 1,672 |
Net Income | 2,508 |
Between January 1 and December 31, 2019:
1. Accounts Receivable increase by $800,000 2. Accounts Payable decrease by $400,000 3. Gross Property, Plant, & Equipment increase by $5,400,000 4. Long Term Debt increases by $100,000
Assume no other changes
What is the Net Cash Flow?
Note: Account change amounts are provided in dollars but the financial statement units are thousands of dollars.
Please specify your answer in the same units as the financial statements (i.e., enter the number from your completed statement of cash flows).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started