Question: Choose the best interpretation based on the data given below Cash flow from assets -$670 Operating cash flows $980 Net capital spending $1,500 Change in

Choose the best interpretation based on the data given below

Cash flow from assets

-$670

Operating cash flows

$980

Net capital spending

$1,500

Change in net working capital

$150 mil

Cash flow to creditors

-$1,080

Cash flow to shareholders

$410
a.

CFFA is negative mainly due to huge investment in short-term working capital
b.

Negative CFFA is financed mainly by borrowing more from the creditors
c.

Dividend payments are lower than net new equity raised leading to positive cash flow to shareholders
d.

Interest payment is more than net new borrowing leading to negative cash flow to creditors

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