Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the income statement and the list of changes to answer the question. Valley Technology Income Statement January 1 to December 31, 2021 (amounts in

Use the income statement and the list of changes to answer the question.

Valley Technology Income Statement January 1 to December 31, 2021 (amounts in thousands)
Revenue 8,200
Cost of Goods Sold (COGS) 2,460
Gross Income 5,740
Sales, General, & Administrative Expenses (SG&A) 1,640
Depreciation Expense 600
Other Expenses 700
Earnings Before Interest & Taxes (EBIT) 2,800
Interest 80
Pre-Tax Income 2,720
Income Taxes 1,088
Net Income 1,632

Between January 1 and December 31, 2021:

1. Accounts Receivable increase by $100,000 2. Accounts Payable decrease by $800,000 3. Gross Property, Plant, & Equipment increase by $5,700,000 4. Long Term Debt decreases by $1,000,000

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Core Concepts Of Accounting

Authors: Robert N. Anthony, Leslie Pearlman Breitner

8th Edition

0130406716, 9780130406712

More Books

Students also viewed these Accounting questions

Question

Does your message use defamatory language?

Answered: 1 week ago