Question
ABC Ltd. shows the following information on its 2017 income statement: GHS Sales 193,000 Cost of goods sold 96,500 Other expenses 5,100 Depreciation expense 13,800
ABC Ltd. shows the following information on its 2017 income statement: GHS Sales 193,000
Cost of goods sold 96,500
Other expenses 5,100
Depreciation expense 13,800
Interest expense 10,400
Taxes 23,520
Dividends 12,500
Increased expenditure on fixed assets 25,000
Increase in net working capital 6,000
In addition, youre told that the firm issued GHS6,000 in new equity during 2017, and redeemed GHS7,500 in outstanding long-term debt.
Required: (i) What was the 2017 free cash flow? (ii) What was the 2017 cash flow to creditors? (iii) What was the 2017 cash flow to stockholders?
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