Cash Flow to Creditors and Stockholders

The cash flows to creditors and stockholders represent the net payments to creditors and owners during the year. Their calculation is similar to that of cash flow from assets. Cash flow to creditors is interest paid less net new borrowing; cash flow to stockholders is dividends paid less net new equity raised.

Cash Flow to Creditors Looking at the income statement in Table 2.2, we see that U.S. paid $70 in interest to creditors. From the balance sheets in Table 2.1, we see that long-term debt rose by $454 - 408 = $46. So, U.S. Corporation paid out $70 in interest, but it borrowed an additional $46. Net cash flow to creditors is thus:

Attracting Wealth Through The Law Of Attraction

Attracting Wealth Through The Law Of Attraction

Wealthy people have this so called millionaires personal mindset, a way of thinking that separates the achievers and successful individuals from the rest of the population. Your subconscious is much powerful than the conscious mind. This can either help you fulfill your dreams or hold you from success that you want in your life.

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