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Company ABC shows the following information on its 2015 income statement: EBIT=$70 000,depreciation expense = $20 000, taxes = $22 400, interest expense = $6

Company ABC shows the following information on its 2015 income statement: EBIT=$70 000,depreciation expense = $20 000, taxes = $22 400, interest expense = $6 000, dividends = $30 000: in addition it is known that company issued $24 000 new equity during 2015 and issued $1 200 new debt during 2015.

A)What is the 2015 operating cash flow?

B)What is the 2015 cash flow to creditors and cash flow to stockholders?

C)If the net capital spending was 0 in 2015, what was addition to net working capital?

D)Could a company,s cash flow to shareholders be negative? Explain how this might come about.

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