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

Statement of net cash flow

S.no	Particulars	Amount in thousands
1	cash flow from operating activities :-
	Net income before taxes	3770
	add:- Depreciation	900
	add:- Interest	110
	change in operating assets & liabilities
	add:- decrease in accounts receivable	300
	less:- decrease in accounts payable	900
	cash generated from operations	4180
	less :- income tax paid	1508
	net cash flow from operating activities -(A)	2672
2.	cash flow from investing activities
	Payment for Property ,Plant & Equipment	7500
	net cash outflow from investing activities -(B)	(7500)
3.	cash flow from financing activities
	Repayment of long term Debt	(600)
	net cash outflow from financing activities -(C)	600
	Net Cash Flow -	(5428)