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?

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

answer; rapid growth in buyer demand and high buyer switching cost;