a. Operating cash flow for 2019-

Operating cash flow= Sales - (Costs + Other expenses) - Tax

Operating cash flow= $178,000 - ($103,600 + $5,100) - $12,705

Operating cash flow=$56,595

b. Cash flow to creditors for 2019-

Cash flow to creditors= Interest Paid + redemption of long term loans

Cash flow to creditors= $8,900+$4,000

Cash flow to creditors= $12,900

c. Cash flow to stockholders for 2019-

Cash flow to stockholders= dividend payments - new stock issues + redemption of shares.

Cash flow to stockholders= $10,143 - $2,900+0

Cash flow to stockholders= $7,243

d. If net fixed assets increased by $23,140 during the year, what was the addition to NWC-

Cash flow to creditors plus cash flow to stockholders equals cash flow from assets which means cash flow from assets is:

Cash flow from assets = Cash flow to creditors + Cash flow to stockholders

Cash flow from assets = $12,900 + $7,243

Cash flow from assets = $20,143

Net capital spending = Depreciation + Increase in fixed assets

Net capital spending = $12,100 + $23,140

Net capital spending = $35,240

Cash flow from assets = OCF Change in NWC Net capital spending

$20,143 = $56,595 Change in NWC $35,240

Change in NWC = $1,212

Please mention your doubts in the comment box, if any.

Thanks.

LO 4 12. Calculating Cash Flows Given the information for Whelan, Inc., in Problems 10 and 11, suppose you also know that the firm's net capital spending for 2019 was $745,000 and that the firm reduced its net working capital investment by $94,300. What was the firm's 2019 operating cash flow, or OCF