Question

Suppose Valley Technology has the following results related to cash flows for 2020:

Decrease in Debt of $1,000,000
Dividends Paid of $200,000
Purchases of Property, Plant, & Equipment of $5,700,000
Other Adjustments from Financing Activities of $100,000
Other Adjustments from Investing Activities of $900,000

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.

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

Answer 1

Valley Technology

Statement of Cash Flows (in thousands):

Investing activities:

Other Adjustments from Investing Activities $900

Financing activities:

Decrease in Debt of ($1,000)

Dividends Paid of ($200)

Other Adjustments from Financing Activities of $100

Net cash flow from financing activities (1,100)

Net cash flows ($200)

Step-by-step explanation:

a) Data and Calculations:

Decrease in Debt of $1,000,000

Dividends Paid of $200,000

Purchases of Property, Plant, & Equipment of $5,700,000

Other Adjustments from Financing Activities of $100,000

Other Adjustments from Investing Activities of $900,000