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 the operating cash flow plus depreciation and interest paid, minus the net payment on long-term debt, the capital expenditures, and the increase in net working capital. In this case, the operating cash flow is $36,407, depreciation is $4,609, interest paid is $1,105, the net payment on long-term debt is $3,780, the capital expenditures are $18,000, and the increase in net working capital is $3,247. Therefore, the cash flow to stockholders is $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