Answer:
The Net Cash Flow is -$4,686,000.
Explanation:
Note: The data in this question are merged. The complete question with the sorted data are therefore provided before answering the question. See the attached pdf file for the complete question with the sorted data.
The explanation of the answers is now provided as follows:
Net Cash Flow can be determined by preparing the cash flow statement as follows:
Ruston company
Cash Flow Statement
For the Year Ended December 31, 2017
<u>Details $’000 $’000 </u>
<u>Cash Flows from Operating Activity </u>
Net Income 2,514
Adjustment to net income
Depreciation expense 700
Increase in accounts receivable (600)
Increase in accounts payable <u> 300 </u>
Net Cash Flows from Operating Activity 2,914
<u>Cash Flows from Investing Activity</u>
Increase in Gross Property, Plant, & Eq. <u> (8,300) </u>
Net Cash Flows from Investing Activity (8,300)
<u>Cash Flows from Financing Activity </u>
Increase in Long Term Debt <u> 700 </u>
Net Cash Flows from Financing Activity <u> 700 </u>
Net Cash Flow <u> (4,686) </u>
Therefore, the Net Cash Flow is -$4,686,000.
