Iculating Free Cash Flow Below are data from the financial statements of Sand and Glass Audio: Net income Common stock issued (net) Cash from operations (net) Cash from investing (net) Change in debt (net) Dividends paid $800 100 Compute the comm 1,450 (400) (475) 500 Change in operating cash (net) 175 Change in common equity (net) 400

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Operating Cash Flows

A cash flow statement (CFS) helps the company to know the amount of cash at its disposal, the activities that lead to earning cash, and the activities which require cash expenditure for a particular period. The statement represents the liquidity of the company.