Question

In: Finance

During the past year, a company had cash flow to creditors, an operating cash flow, and...

During the past year, a company had cash flow to creditors, an operating cash flow, and net capital spending of $30,817, $70,361, and $31,140, respectively. The net working capital at the beginning of the year was $12,526 and it was $14,950 at the end of the year. What was the company's cash flow to stockholders during the year?

Multiple Choice

  • $2,424

  • $10,828

  • $5,980

  • $4,234

Solutions

Expert Solution

Cash flow to stockholders = Operating cash flow - Change in working capital - Net capital spending - Cash flow to creditors

Cash flow to stockholders = $70,361 - ($14,950 - $12,526) - $31,140 - $30,817

Cash flow to stockholders = $5,980


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