If Green Co. paid $28,400 in dividends and $29,571 in interest over the past year. During the year, net working capital increased from $13,986 to $18,719. During the year, the company issued $25,500 in new equity and paid off $21,700 in long-term debt. What the company's cash flow from assets will be is: $48,371
First step is to calculate the cash flow to creditor
Cash flow to creditors = $21,700 + $29,571
Cash flow to creditors = $51,271
Second step is to calculate the cash flow to Stockholders
Cash flow to Stockholders =$28,400 - $25,500
Cash flow to Stockholders =$2,900
Now let determine the cash flow from assets using this formula
Cash flow from assets = Cash flow to creditors + Cash flow to stockholders
Let plug in the formula
Cash flow from assets = $51,271 + $2,900
Cash flow from assets = $48,371
Inconclusion if Green Co. paid $28,400 in dividends and $29,571 in interest over the past year. During the year, net working capital increased from $13,986 to $18,719. During the year, the company issued $25,500 in new equity and paid off $21,700 in long-term debt. What the company's cash flow from assets will be is: $48,371
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