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

Solution: 300,000

Working:

Statement of cash flows in '000's Net Income 7,700 Decrease in Accounts Payable   -900 Decrease in Accounts Receivable 300 Decrease in debt -600 Depreciation Expense   1,700 Dividends -800 Increase in Inventory   -800 Purchases of PP&E -7500 Other adjustments from Financing Activities   300 Other adjustments from Investing Activities   300 Other adjustments from Operating Activies   600 Net cash flow 300

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