Question

Suppose Gulf Shipping Company has the following results related to cash flows for 2019:

Net Income of $7,800,000
Decrease in Accounts Payable of $300,000
Increase in Accounts Receivable of $800,000
Depreciation of $1,200,000
Increase in Inventory of $900,000
Other Adjustments from Operating Activities of $700,000
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 from Operating Activities?
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

$7,700

Step-by-step explanation:

Cash Flow from Operating Activities

Particulars Amount

Net Income $7,800

Add: Depreciation $1,200

Add: Other adjustments $700

Cash flow before working capital adjustments $9,700

Less: Decrease in Accounts payable ($300)

Increase in Accounts receivable ($800)

Increase in Inventory ($900)

Net Cash flow from Operating activities $7,700