Answer:
The company’s cash flow to stockholders during the year is $6,224
Explanation:
In this question, we are asked to calculate a company’s cash flow to stakeholders during a particular year.
To calculate this, we proceed as follows;
Change in Net Working Capital = Ending Working Capital – Beginning Working Capital
Change in Net Working Capital = $14,650 - $12,352 = $2,298
Cash Flow from Assets = Operating Cash Flow – Net Capital Spending - Change in Working Capital
Cash Flow from Assets = $69,573 - $30,460 - $2,298 = $36,815
Cash Flow to stockholders = Cash Flow from Assets – Cash flow to Creditors
= $36,815 - $30,591 = $6,224
