Thompson's Jet Skis has operating cash ﬂow of $218. Depreciation is $45 and interest paid is $35. A net total of $69 was paid on long-term debt. The ﬁrm spent $180 on ﬁxed assets and increased
Net working capital by $38. What is the amount of the cash ﬂow to stockholders?

Question

Quizplus · Accepted Answer

Operating cash flow = $218
Depreciation = $45
Interest paid = $35
Net payment on long-term debt = -$69
Cash flow from assets = $218 - $45 - $35 - (-$69) = $297
Cash flow to stockholders = Cash flow from assets - increase in net working capital - spending on fixed assets
Cash flow to stockholders = $297 - $38 - $180 = -$104. 
Therefore, the correct answer is A) -$104.

Thompson's Jet Skis Has Operating Cash ﬂOw of $218