Homework SourseSuppose Stuart Company has the following results related to
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?
Solution
Hence net cash flow = $300,000
| Statement of Cash Flows | ||
| For year ended 2017 | ||
| Particulars | Details (In thousands) | Amount (In thousands) |
| Cash Flow from Operating Activities: | ||
| Net Income | $7,700.00 | |
| Adjustments to reconcile net income to net cash provided by operations: | ||
| Depreciation Expense | $1,700.00 | |
| Decrease in accounts receivables | $300.00 | |
| Increase in inventory | -$800.00 | |
| Decrease in accounts payable | -$900.00 | |
| Decrease in Debt | -$600.00 | |
| Other Adjustments | $600.00 | $300.00 |
| Net Cash provided by operating activities (A) | $8,000.00 | |
| Cash Flow from Investing Activities: | ||
| Purchase of Property plant and Equipment | -$7,500.00 | |
| Other Adjustments | $300.00 | |
| Net Cash used by Investing activities (B) | -$7,200.00 | |
| Cash Flow from Financing Activities: | ||
| Dividends paid | -$800.00 | |
| Other Adjustments | $300.00 | |
| Net Cash used by financing activities (C ) | -$500.00 | |
| Net Cash Flow (A+B+C) | $300.00 |
