Question

Suppose Ruston Company has the following results related to cash flows for 2017: Net Income of $5,800,000 Increase in Accounts Payable of $300,000 Increase in Accounts Receivable of $600,000 Increase in Debt of $700,000 Depreciation Expenses of $1,200,000 Purchases of Property, Plant, & Equipment of $8,300,000 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? Please specify your answer in the same units as the statement of cash flows.

Answer 1

Statement of cash flow :

Cash flow form operating activities
Net income	5800000
Adjustments
Increase account payable	300000
Increase account receivable	-600000
Depreciation expense	1200000
Net cash flow from operating activities	6700000
Cash flow from investing activities
Purchase of property, plant and equipment	-8300000
Net cash used in investing activities	-8300000
Cash flow from financing activities
Incease debt	700000
Net cash flow from financing activities	700000
Net cash flow (outflow)	-900000