The Lakeside Inn had operating cash flow of $43,450. Depreciation was $6,700 and

Question

The Lakeside Inn had operating cash flow of $43,450. Depreciation was $6,700 and interest paid was $2,480. A net total of $2,600 was paid on long-term debt. The firm spent $24,670 on fixed assets and decreased net working capital by $1,330. What is the amount of cash flow to stockholders?

A. $5,100

B. $19,020

C. $18,020

D. $15,030

E. $16,680

I am offering 750 points because I want to be shown how to do this, I have spent way too much time on this one and I cannot figure out how to work it out. In order to calculate cash flow to stockholders you have to have the amount of dividends, and that is what I am having trouble with. Please help!

Explanation / Answer

D. $15,030

Cash flow to stockholders =Operating Cash Flow - Capital Spending - Additions to NWC-interest paid-long term debt=43,450- $24,670-(-1,330)-2,600-2,480 = $15,030

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