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A) Fairbanks Co.'s balance sheet showed long-term debt of $5 million in 2018, and $4.5 million in 2019. In 2018, the balance sheet showed a

A) Fairbanks Co.'s balance sheet showed long-term debt of $5 million in 2018, and $4.5 million in 2019. In 2018, the balance sheet showed a common stock account of $2 million, and 2.5 million in an additional paid-in surplus account. In 2019, the balance sheet showed $2.5 million and 2.5 million in the same two accounts respectively. In 2019, the income statement showed an interest expense of $500,000 and dividends paid of $700,000. Calculate the cash flow to the stockholders for the year.

B) Calculate cash flow to creditors for the year.

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