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

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?

Explanation / Answer

Hence net cash flow = $300,000

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

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