Question

Use the income statement and the list of changes to answer the question.

Stuart Company Income Statement January 1 to December 31, 2017 (amounts in thousands)
Revenue	8,800
Cost of Goods Sold (COGS)	2,640
Gross Income	6,160
Sales, General, & Administrative Expenses (SG&A)	880
Depreciation Expense	900
Other Expenses	500
Earnings Before Interest & Taxes (EBIT)	3,880
Interest	110
Pre-Tax Income	3,770
Income Taxes	1,508
Net Income	2,262

Between January 1 and December 31, 2017:

1. Accounts Receivable decrease by $300,000
2. Accounts Payable decrease by $900,000
3. Gross Property, Plant, & Equipment increase by $7,500,000
4. Long Term Debt decreases by $600,000

Assume no other changes

What is the Net Cash Flow?

Please specify your answer in the same units as the income statement.

Answer 1

	Amounts in thousands
Cash flow from operating activities:
Net income		2262
Adjustments to convert to cash basis:
Depreciation expense	900
Decrease in accounts receivable	300
Decrease in accounts payable	-900	300
Net cash flow from operating activities		2562
Cash flow from investing activities:
Purchase of property, plant & equipment		-7500
Cash flow from financing activities:
Payment of long-term debt		-600
Net cash flow		-5538