During the past year, a company had cash flow to stockholders, an operating cash flow, and net capital spending of $16,384, $39,622, and $18,480, respectively. The net working capital at the beginning of the year was $6,996 and it was $8,780 at the end of the year. What was the company's cash flow to creditors during the year?

$3,674

Explanation:

Cash flow to the creditors can be calculated by taking the difference of Cash Flow from Assets and Cash flow to Stockholders .

Change in Net Working Capital = Ending Working Capital – Beginning Working Capital

Change in Net Working Capital = $8,780 - $6,996

Change in Net Working Capital = $1,084

Cash Flow from Assets = Operating Cash Flow – Net Capital Spending - Change in Working Capital

Cash Flow from Assets = $39,622 - $18,480 - $1,084

Cash Flow from Assets = $20,058

Cash Flow from Creditors = Cash Flow from Assets – Cash flow to Stockholders

Cash Flow from Creditors = $20,058  - $16,384

Cash Flow from Creditors = $3,674

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.