Consider the following financial information and answer the questions that follow: Sales:$250,000 Costs: $134,000 Depreciation:$10,200 Operating expenses: $6,000 Interest expenses:$20,700 Taxes: $18,420 Dividends: $10,600 Addition to Retained Earnings: $50,000 Long term debt repaid:$9,300 New Equity issued:8,470 New fixed assets acquired:$15,000 You are required to: 1) Calculate the cash flow to creditors ii) Calculate the cash flow to shareholders iii)Calculate the cash flow from assets (iv)Calculate net capital spending v)Calculate change in NWC

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Cash Flow Statement Analysis

A company's cash flow is the movement of its cash inflows and cash outflows. A cash flow statement is prepared to determine changes in an organization's cash position. A cash flow statement shows how much money was generated and spent on the business during the fiscal year. The cash flow analysis is a method of analyzing an organization's investing, financing, and operating activities. A cash flow statement reveals an organization's liquidity and solvency, as well as its ability to change cash flows in the future. It eliminates the other effects of accounting methods by improving the comparability of different organizations' operational performance.