Cash flow from assets

$ 390

To get cash flow to creditors, notice that long-term borrowing decreased by $1,021 during the year and that interest paid was $196, so:

Finally, dividends paid were $250. To get net new equity raised, we have to do some extra calculating. Total equity was up by $6,739 - 5,440 = $1,299. Of this increase, $222 was from additions to retained earnings, so $1,077 in new equity was raised during the year. Cash flow to stockholders was thus:

As a check, notice that cash flow from assets ($390) does equal cash flow to creditors plus cash flow to stockholders ($1,217 - 827 = $390).

0 0

Post a comment