Question

Miser Materials paid $27,500 in dividends and $28,311 in interest over the past year while net working capital increased from $13,506 to $18,219. The company purchased $42,000 in net new fixed assets and had depreciation expenses of $16,805. During the year, the firm issued $25,000 in net new equity and paid off $21,000 in long-term debt. What is the amount of the cash flow from assets? i think the answer is $51,811 but i want to know the process. Please show the work.

Answer 1

Answer:

The amount of the cash flow from assets is outflow of $42,000, all other cash a re from Cash flow from operation and cash flow from finance.

Explanation:

Operating Cash Flow

net working capital increased from $13,506 to $18,219.

depreciation expenses of $16,805.

Investing Cash Flows

company purchased $42,000 in net new fixed assets

Financing Cash Flows

Miser Materials paid $27,500 in dividends

$28,311 in interest over the past year

firm issued $25,000 in net new equity

and paid off $21,000 in long-term debt.