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Red Barchetta Co. paid $27,545 in dividends and $28,374 in interest over the past year. During the year, net working capital increased from $13,530 to $18,244. The company purchased $42,110 in fixed assets and had a depreciation expense of $16,850. During the year, the company issued $25,025 in new equity and paid off $21,035 in long-term debt. What was the company's cash flow from assets?

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hyderali230

Answer:

Cash outflow of $42,110 or -$42,110

Explanation:

All the cash inflows or outflows associated with the fixed assets is known as the cash flows from assets. Cash flows used for acquiring, replacing, Enhancing the capability of Fixed assets, received from disposal of fixed assets etc. are all included in this category.

A cash outflow of $42,110 is the only which is categorised as the cash flow from assets.

Dividend, Interest, issued new equity and paid long term debt are all cash flows from financing activities. Net working capital is the operating cash flow and depreciation expense is non cash expense.

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