During the past year, a company had cash flow to creditors, an operating cash flow, and net capital spending of $30,591, $69,573, and $30,460, respectively. The net working capital at the beginning of the year was $12,352 and it was $14,650 at the end of the year. What was the company's cash flow to stockholders during the year

The company’s cash flow to stockholders during the year is $6,224

Solution:

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

answer; specific performance;

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.