Minbari, Inc. shows the following information on its Y2019 income statement: Sales = $480,000; Cost of goods sold = $200,000; Depreciation expense = $30,000; Interest expense = $50,000; Tax rate = 20%; Dividends = $30,000. The firm issued $20,000 in new equity, and used the amount to redeem $20,000 in outstanding long-term debt. What is the Y2019 cash flow to creditors of Minbari, Inc.? What is the Y2019 cash flow to stockholders of Minbari, Inc.?

What is the Y2019 cash flow from assets of Minbari, Inc.?

1. a. -$80,000.
2. b. -$60,000.
3. c. +$60,000.
4. d. +$80,000.