Problem 2-12 Cash Flow Identity

Freeman, Inc., reported the following financial statements for the last two years.

FREEMAN, INC. 2017 Income Statement Sales$565,360 Cost of goods sold 273,945 Selling & administrative 124,717 Depreciation 54,560 EBIT$112,138 Interest 19,312 EBT$92,826 Taxes 48,270 Net income$44,556 Dividends$11,200 Addition to retained earnings$33,356

FREEMAN, INC. Balance Sheet as of December 31, 2016Cash$13,480 Accounts payable$23,980 Accounts receivable 18,978 Inventory 13,810 Current assets$46,268 Long-term debt 135,200 Net fixed assets 344,442 Owners' equity 231,530 Total assets$390,710 Total liabilities and owners' equity$390,710

FREEMAN, INC. Balance Sheet as of December 31, 2017Cash$14,466 Accounts payable$27,010 Accounts receivable 21,083 Inventory 22,770 Current assets$58,319 Long-term debt 153,600 Net fixed assets 406,295 Owners' equity 284,004 Total assets$464,614 Total liabilities and owners' equity$464,614

Requirement 1:

Calculate the operating cash flow. (Do not round intermediate calculations.) Operating cash flow $ Requirement 2:

Calculate the change in net working capital. (Do not round intermediate calculations.) Change in net working capital $ Requirement 3:

Calculate the net capital spending. (Do not round intermediate calculations.) Net capital spending $ Requirement 4:

Calculate the cash flow from assets. (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) Cash flow from assets $ Requirement 5:

Calculate the cash flow to creditors. (Do not round intermediate calculations.) Cash flow to creditors $ Requirement 6:

Calculate the cash flow to stockholders. (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) Cash flow to stockholders $