Question

Suppose Stuart Company has the following results related to cash flows for 2019:

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 $1,100,000
Purchases of Property, Plant, & Equipment of $7,500,000

Assuming no other cash flow adjustments than those listed above, create a statement of cash flows with amounts in thousands.

What is the Net Cash Flow?

Note: Financial results are provided in dollars but the income statement units are thousands of dollars.

Please specify your answer in the same units as the statement of cash flows (i.e., enter the number from your completed statement of cash flows).

Answer 1

Statement of Cash Flows:
Cash flows from Operating activities:
Net Income			77,00,000
Adjustment for reconciliation
Depreciation expense		11,00,000
Decrease in Accounts payable		-9,00,000
Decrease in Accounts receivable	3,00,000
Net cash provided from Operating activities	82,00,000
Cash flows from Investing activities
Purchase of Property plant and Equipment	-75,00,000
Net cash used in investing activities		-75,00,000
Cash flows from Financing activities
Repayment of debts			-6,00,000
Net cash used in financing activities		-6,00,000
Net cash flows during the year			1,00,000