a)
To determine: The operating cash flow.
Introduction:
Operating cash flow refers to the cash from operating activities or primary activities of the firm.
b)
To calculate: The cash flow to creditors.
Introduction:
The cash flow to creditors refers to the net payment received by the creditors of the company. It refers to the interest paid to the creditors minus the net fresh debt borrowed by the company.
c)
To calculate: The cash flow to stockholders.
Introduction:
The cash flow to stockholders’ refers to the dividend paid to the shareholders of the company minus the fresh equity raised by the company. In other words, it refers to the net payment received by the shareholders of the company.
d)
To calculate: The addition to net working capital.
Introduction:
Net working capital is the current assets minus the current liabilities of the company. There will be a change in net working capital due to the increase or decrease in current assets.
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Essentials of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
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