Operating Cash Flow: Restructuring Charges
Using the following information, compute cash flow from operating activities.
|
Decrease in inventory |
$ 300 |
|
Increase in wages payable |
170 |
|
Restructuring charge |
2,300 |
|
Depreciation |
1,000 |
|
Net income |
500 |
The restructuring charge consists of two elements: (1) $1,500 for the write down in value of certain assets and (2) $800 for recognition of an obligation to relocate employees; none of the relocation has yet taken place.