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 O a. Interest payment is more than net new borrowing leading to negative cash flow to creditors O b. Negative CFFA is financed mainly by borrowing more from the creditors OC CFFA is negative mainly due to huge investment in short-term working capital Od. Dividend payments are lower than net new equity raised leading to positive cash flow to shareholders
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