Question
Use the income statement and the list of changes to answer the question. Hopewell Corporation Income Statement January 1 to December 31, 2017 (amounts in
Use the income statement and the list of changes to answer the question. Hopewell Corporation Income Statement January 1 to December 31, 2017 (amounts in thousands) Revenue 6,400 Cost of Goods Sold (COGS) 1,280 Gross Income 5,120 Sales, General, & Administrative Expenses (SG&A) 640 Depreciation Expense 1,100 Other Expenses 600 Earnings Before Interest & Taxes (EBIT) 2,780 Interest 80 Pre-Tax Income 2,700 Income Taxes 1,080 Net Income 1,620 Between January 1 and December 31, 2017: 1. Accounts Receivable decrease by $400,000 2. Accounts Payable decrease by $100,000 3. Gross Property, Plant, & Equipment increase by $7,800,000 4. Long Term Debt increases by $200,000 Assume no other changes What is the Net Cash Flow? Please specify your answer in the same units as the income statement.
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