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?

Answer 1

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