g During the past year, a company had cash flow to creditors, an operating cash flow, and net capital spending of $30,591, $69,573, and $30,460, respectively. The net working capital at the beginning of the year was $12,352 and it was $14,650 at the end of the year. What was the company's cash flow to stockholders during the year

Question

Business

Stanley Diaz

21 June, 12:52

g During the past year, a company had cash flow to creditors, an operating cash flow, and net capital spending of $30,591, $69,573, and $30,460, respectively. The net working capital at the beginning of the year was $12,352 and it was $14,650 at the end of the year. What was the company's cash flow to stockholders during the year

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Brody Nichols · Answer 1

The company's cash flow to stockholders during the year is $6,224

Explanation:

In this question, we are asked to calculate a company's cash flow to stakeholders during a particular year.

To calculate this, we proceed as follows;

Change in Net Working Capital = Ending Working Capital - Beginning Working Capital

Change in Net Working Capital = $14,650 - $12,352 = $2,298

Cash Flow from Assets = Operating Cash Flow - Net Capital Spending - Change in Working Capital

Cash Flow from Assets = $69,573 - $30,460 - $2,298 = $36,815

Cash Flow to stockholders = Cash Flow from Assets - Cash flow to Creditors

= $36,815 - $30,591 = $6,224