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Siam Traders had Net Income for 2020 of $9,500,000. The firm invested $1,000,000 in manufacturing equipment during 2019 but made no additional capital investments in 2020. The equipment is being depreciated over five years using straight-line depreciation, starting in 2019. Assuming no other adjustments to cash flow than those mentioned here, create a statement of cash flows for 2020 with amounts in thousands.

Required:
What is the Net Cash Flow in 2020?

Respuesta :

Tundexi

Answer:

Cash flows from operating activities:

Net income                                                             $9,500,000

Adjustments

Depreciation Expense [$1,000,000/5 years]       $200,000

Net cash flows from Operating activities                                      $9,700

Cash flows from investing activities                                              $0

Cash flows from investing activities                                              $0        

Net cash flow                                                                                    $9,700