Home Supply,Inc.has compiled the following information: For 2014,the cash flow from assets is _____ and the cash flow to shareholders is ______.

Question

Home Supply,Inc.has compiled the following information:  For 2014,the cash flow from assets is _____ and the cash flow to shareholders is ______.

Quizplus · Accepted Answer

2014 operating cash flow = $511,500 - $61,100 - $289,300 - $39,400 = $121,700; Change in net working capital = ($34,900 + $56,800 - $32,900 + $36,700) - ($38,200 + $58,800 - $36,800 + $41,500) = -$6,200; Net capital spending = $392,200 - $336,900 + $23,500 = $78,800; Cash flow from assets = $121,700 - (-$6,200) - $78,800 = $49,100; Cash flow to creditors = $21,600 - ($295,000 - $260,000) = -$13,400; Addition to retained earnings = $32,700 - $28,600 = $4,100; Net income = $511,500 - $289,300 - $61,100 - $23,500 - $21,600 - $39,400 = $76,600; Dividends paid = $76,600 - $4,100 = $72,500; Cash flow to stockholders = $72,500 - ($160,000 - $150,000) = $62,500; Cash flow from assets = -$13,400 + $62,500 = $49,100