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2 years ago

If a firm has $300,000 in cash flow from assets and $100,000 in cash flow to shareholders, what is the cash flow to creditors?

Business

1 answer:

Oxana [17]2 years ago

8 0

The cash flow from assets must equal the sum of the cash flow to creditors plus shareholders.

CF from Assets = CF to Shareholders plus CF to Creditors.

CF From assets = CF to Shareholders + CF to creditors.

CF from assets - CF to Shareholders = CF to creditors.

Thus, 300,000 - 100,000 = 200,000.

What is cash flow (CF)?

One of the areas on the cash flow statement that details how much money was made or spent on various investment-related activities during a given time period is the cash flow from investing activities (CFI) section. Purchases of tangible assets, investments in securities, and sales of assets or securities are all examples of investing activities.

A company's poor performance is frequently indicated by negative cash flow. Negative cash flow from investing activities, however, could be the result of significant sums of money being spent on things like R&D that are essential to the company's long-term success.

It's crucial to understand where an organization's investment activity fits into its financial statements before analyzing the various positive and negative cash flows from investing activities.

The balance sheet gives a summary of the assets, liabilities, and owner equity of a company as of a particular date. An overview of the company's earnings and outlays for a time period is given by the income statement. By displaying how much money is made or spent on operating, investing, and financing activities over a given time period, the cash flow statement fills the gap between the income statement and the balance sheet.

Thus, $200,000 is cash flow to creditors.

For more information on Cash Flow, refer to the given link:

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1 year ago

A basic finding of labor economics is that workers who have more experience in the labor force are paid more than workers who ha

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3 years ago

A man has $245,000 invested in three properties. One earns 12%, one 10% and one 8%. His annual income from the properties is $23

astraxan [27]

Answer:

for 8% investment = $110000

for 12% investment = $55000

for 10% investment = $80000

annual income for each property is

x amount for 8% investment = $8800

y amount for 12% investment = $6600

z amount for 10% investment = $8000

Explanation:

Given data

investment = $245000

rate 1 = 12%

rate 2 = 10%

rate 3 = 8%

annual income = $23400

rate = 8% twice that invested at 12%

to find out

invested in each property and the annual income from each property

solution

let us consider x amount for 8% investment

and consider y amount for 12% investment

and consider z amount for 10% investment

from question we say, 8% is twice that invested at 12%

x = 2y ........1

and

x + y + z = 245000 .............2

put 1 in equation 2

2y + y + z = 245000

z = 245000 - 3y ...................3

and we can say that

0.08x + 0.12y + 0.10z = 23400 ...........................4

put equation 1 and 3 in 4

0.08(2y) + 0.12y + 0.10( 245000 - 3y ) = 23400

0.16y + 0.12y - 0.3y = -1100

0.02y = 1100

y = $55000

so x = 2(y) = 2(5500) = $110000

and z = 245000 - 3(55000) = $80000

so annual income for each property is

x amount for 8% investment = 0.08 × 110000 = $8800

y amount for 12% investment = 0.12 × 55000 = $6600

z amount for 10% investment = 0.10 × 80000 = $8000

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3 years ago

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Answer:

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I hope my answer helps you.

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