Question

Suppose Ruston Company has the following results related to cash flows for 2017: Net Income of $6,700,000 Increase in Accounts Payable of $300,000 Decrease in Accounts Receivable of $500,000 Depreciation of $1,100,000 Increase in Inventory of $800,000 Other Adjustments from Operating Activities of -$300,000 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 from Operating Activities? Please specify your answer in the same units as the statement of cash flows.

Answer 1

Ruston Company
Statement of cash flow
All Amount in thousands
Cash Flow from Operating Activities
Net Income	6,700
Add: Depreciation	1,100
Add: Increase in Accounts Payable	300
Add: Decrease in Accounts Receivable	500
Less: Increase in Inventory	-800
Less: Other Adjustments from Operating Activities	-300
Net Cash Flow from Operating Activities	7,500
Net Cash Flow from Operating Activities (in thousands)	7,500