The Lakeside Inn had operating cash flow of $48,450. Depreciation was $6,700 and 15) interest paid was $2,480. A net total of $2,620 was paid on long-term debt. The firm spent $24,000 on fixed assets and decrease net working capital by $1,330. What was the amount of the cash flow to stockholders?

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Answer: the amount of the cash flow to stockholders is $20,680.

Explanation: operating cash flow of $48,450

Depreciation was $6,700

interest paid was $2,480

net total of $2,620 was paid on long-term debt

increased its net capital spending by $24,000

decreased net working capital by $1,330

We want to calculate the cash flow to stockholders. We can do that subtracting all non-cash items from operating cash flow and then subtracting net capital spending and adding the net changes in working capital.

Cash Flow from Assets = 48450 (Operating Cash Flow) - (-1330) - 24000 (Fixed Assets Expenditure) = 25780

Cash Flow to Creditors (Interest) = 2480 - (-2620) = 5100

Cash Flow to Stockholders = 25780 - 5100 = 20,680

If the Lakeside Inn had operating cash flow of $48,450. Depreciation was $6,700 and interest paid was $2,480. A net total of $2,620 was paid on long-term debt. The firm spent $24,000 on fixed assets and decreased net working capital by $1,330. What the amount of the cash flow to stockholders will be is $20,680

First step is to calculate the Free cash flow (Cash flow from assets)

Free cash flow (Cash flow from assets) = $48,450 - (-$1,330) - $24,000

Free cash flow (Cash flow from assets)  = $25,780

Second step is to determine the cash flow to creditor

Cash flow to creditors =$2,480 - (-$2,620)

Cash flow to creditors = $5,100

Now let determine the amount of the cash flow to stockholders

Using this formula

Cash flow to stockholders =Free cash flow (Cash flow from assets) -Cash flow to creditors

Let plug in the formula

Cash flow to stockholders = $25,780 - $5,100

Cash flow to stockholders = $20,680

Inconclusion if the Lakeside Inn had operating cash flow of $48,450. Depreciation was $6,700 and interest paid was $2,480. A net total of $2,620 was paid on long-term debt. The firm spent $24,000 on fixed assets and decreased net working capital by $1,330. What the amount of the cash flow to stockholders will be is $20,680

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