Thompson's Jet Skis has operating cash flow of $258.Depreciation is $45 and interest paid is $53.A net total of $79 was paid on long-term debt.The firm spent $210 on fixed assets and increased net working capital by $48.What is the amount of the cash flow to stockholders?

Question

Quizplus · Accepted Answer

The cash flow to stockholders is calculated as operating cash flow minus net capital spending, changes in net working capital, and net payments on long-term debt. Here, it is $258 - $210 - $48 - $79 = -$79. Since the cash flow to stockholders is negative, it indicates that the firm received $79 from stockholders. Therefore, the cash flow to stockholders is $258 - $210 - $48 - $79 = -$79, which means the firm received $79 from stockholders, making the cash flow to stockholders $26.

Thompson's Jet Skis Has Operating Cash Flow of $258