The Row Boat Cafe has operating cash flow of $36,407. Depreciation is $4,609 and interest paid is $1,105. A net total of $3,780 was paid on long-term debt. The firm spent $18,000 on fixed assets and increased net working capital by $3,247. What is the amount of the cash flow to stockholders?

Question

Quizplus · Accepted Answer

The cash flow to stockholders is calculated as follows:Operating cash flow: $36,407Depreciation: $4,609Interest paid: $1,105Net payment on long-term debt: $3,780Fixed asset investment: $18,000Increase in net working capital: $3,247Cash flow to stockholders = Operating cash flow + Depreciation - Interest paid - Net payment on long-term debt - Fixed asset investment - Increase in net working capital= $36,407 + $4,609 - $1,105 - $3,780 - $18,000 - $3,247= $10,275

The Row Boat Cafe Has Operating Cash Flow of $36,407