A company had net fixed assets of $7 million on December 31, 2018 and $10 million...

A company had net fixed assets of $7 million on December 31, 2018 and $10 million on December 31, 2019. For 2019, the company’s depreciation expense was $1 million and its cash flow from operations was $7 million. During 2019, the company’s net working capital increased by $500,000 and net capital spending was $4 million. What was the firm’s cash flow from assets?

Expert Solution

Firm's Cashflow from assets
Cash flow from operation	$ 7.00
Add- depreciation	$ 1.00
Add- Increase in net working capital	$ -0.50
Net Cashflow from operations	$ 8.00

Increase in Net Fixed Assets	$ -3.00
Net Capital Spending	$ -4.00
Net Cashflow from Investing	$ -7.00

Firm's Cashflow from assets	$ 1.00

jeff jeffy answered 1 year ago

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