Question

Thompson's jet skis has operating cash flow of $11,618. Depreciation is $2,345 and interest paid is $395. A net total of $485 was paid on long-term debt. The firm spent $6,180 on fixed assets and decreased net working capital by $420. What is the cash flow of the firm?

Answer 1

Answer:

Cash flow =$5858

Explanation:

Given data:

Operating cash flow is $11,618

Decrease in net working capital is $420

Capital spending is $6180

We know that cash flow is given as

Cash flow  = operating cash flow - change in net working capital - capital spending

Putting all value in the above formula

Cash flow = $11618 - (-$420) -$6180

Cash flow =$5858