e) Cash flow from Assets for 2017 cash flow from assets = cash flow generated from operations + change in working capital + cash flow from fixed assets cash flow from operations Note: Net income = sales (40000) - costs(30000)-depreciation(2000)- interest (400) Chnage in working capital = change in current assets - change in current liabilities = 800-200 = $600 Cash flow from fixed assets = change in fixed assets = $3000 Cash flow from assets = 9000 + 600+3000 = $12,600 f) Cash flow to creditors New debt raised = $4000 Long term debt in 2017 = $3000 cash flow to creditrs = 4000-3000 = $1,000 g) Cash flow to equity holders in 2017 = dividends paid + share repurchased = 5404 + 1000 = $6,404 h)Net income$7,600Depreciation$2,000increase in current assets-$800increase in current liabilities$200Cash from operations$9,000 Solution e) Cash flow from Assets for 2017 cash flow from assets = cash flow generated from operations + change in working capital + cash flow from fixed assets cash flow from operations Note: Net income = sales (40000) - costs(30000)-depreciation(2000)- interest (400) Chnage in working capital = change in current assets - change in current liabilities = 800-200 = $600 Cash flow from fixed assets = change in fixed assets = $3000 Cash flow from assets = 9000 + 600+3000 = $12,600 f) Cash flow to creditors New debt raised = $4000 Long term debt in 2017 = $3000 cash flow to creditrs = 4000-3000 = $1,000 g) Cash flow to equity holders in 2017 = dividends paid + share repurchased = 5404 + 1000 = $6,404 h)Net income$7,600Depreciation$2,000increase in current assets-$800increase in current liabilities$200Cash from operations$9,000.

1. e) Cash flow from Assets for 2017
cash flow from assets = cash flow generated from operations + change in working capital + cash
flow from fixed assets
cash flow from operations
Note: Net income = sales (40000) - costs(30000)-depreciation(2000)- interest (400)
Chnage in working capital = change in current assets - change in current liabilities
= 800-200
= $600
Cash flow from fixed assets = change in fixed assets = $3000
Cash flow from assets = 9000 + 600+3000
= $12,600
f) Cash flow to creditors
New debt raised = $4000
Long term debt in 2017 = $3000
cash flow to creditrs = 4000-3000
= $1,000
g) Cash flow to equity holders in 2017 = dividends paid + share repurchased
= 5404 + 1000
= $6,404
h)Net income$7,600Depreciation$2,000increase in current assets-$800increase in current
liabilities$200Cash from operations$9,000
Solution
e) Cash flow from Assets for 2017
cash flow from assets = cash flow generated from operations + change in working capital + cash
flow from fixed assets
cash flow from operations
Note: Net income = sales (40000) - costs(30000)-depreciation(2000)- interest (400)
Chnage in working capital = change in current assets - change in current liabilities
= 800-200
= $600
Cash flow from fixed assets = change in fixed assets = $3000
Cash flow from assets = 9000 + 600+3000
= $12,600

2. f) Cash flow to creditors
New debt raised = $4000
Long term debt in 2017 = $3000
cash flow to creditrs = 4000-3000
= $1,000
g) Cash flow to equity holders in 2017 = dividends paid + share repurchased
= 5404 + 1000
= $6,404
h)Net income$7,600Depreciation$2,000increase in current assets-$800increase in current
liabilities$200Cash from operations$9,000