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The Lifes Good Corporation 2012 income statement shows the following: Income Statement 2012 Sales $ 5,250,000 Costs 2,173,000 Other expenses 67,400 Depreciation expense 179,000 EBIT

The Lifes Good Corporation 2012 income statement shows the following: Income Statement 2012 Sales $ 5,250,000 Costs 2,173,000 Other expenses 67,400 Depreciation expense 179,000 EBIT $ 2,830,600 Interest expense 85,555 EBT $ 2,745,045 Taxes 89,000 Net income $ 2,656,045 Dividends $ 169,000 Addition to retained earnings $ 2,487,045 Lifes Good Corp. also issued $106,700 in new equity during the year and redeemed $65,300 in outstanding long-term debt. i. Calculate the operating cash flow for the firm. (2 marks) $2,920,600 ii. Calculate the cash flow to creditors. (2 marks) $150,855 iii. Calculate the cash flow to stockholders. (2 marks) 62,300 iv. Define free cash flow (FCF) and state one of the equations for computing FCF. (3 marks)

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