Question

Suppose Stuart Company has the following results related to cash flows for 2017:

Net Income of $7,700,000
Decrease in Accounts Payable of $900,000
Decrease in Accounts Receivable of $300,000
Decrease in Debt of $600,000
Depreciation Expenses of $1,700,000
Dividends of $800,000
Increase in Inventory of $800,000
Purchases of Property, Plant, & Equipment of $7,500,000
Other Adjustments from Financing Activities of $300,000
Other Adjustments from Investing Activities of $300,000
Other Adjustments from Operating Activities of $600,000

Create a statement of cash flows with amounts in thousands.

What is the Net Cash Flow?

Answer 1

Statement of Cash Flows
For year ended 2017
Particulars	Details (In thousands)	Amount (In thousands)
Cash Flow from Operating Activities:
Net Income		$7,700.00
Adjustments to reconcile net income to net cash provided by operations:
Depreciation Expense	$1,700.00
Decrease in accounts receivables	$300.00
Increase in inventory	-$800.00
Decrease in accounts payable	-$900.00
Decrease in Debt	-$600.00
Other Adjustments	$600.00	$300.00
Net Cash provided by operating activities (A)		$8,000.00
Cash Flow from Investing Activities:
Purchase of Property plant and Equipment	-$7,500.00
Other Adjustments	$300.00
Net Cash used by Investing activities (B)		-$7,200.00
Cash Flow from Financing Activities:
Dividends paid	-$800.00
Other Adjustments	$300.00
Net Cash used by financing activities (C )		-$500.00
Net Cash Flow (A+B+C)		$300.00

Hence net cash flow = $300,000