Oscar Ltd had a cash flow to suppliers of $2,840, a cash flow to shareholders of $1,630 last year. The firm spent a net of $1,420 on fixed assets and recovered working capital of $330. What was the company's operating cashflows?Group of answer choices-$5,560-$2,510-$1,750$4,900$5,560
Question
Oscar Ltd had a cash flow to suppliers of 1,630 last year. The firm spent a net of 330. What was the company's operating cashflows?Group of answer choices-2,510-4,900$5,560
Solution
The operating cash flow can be calculated by adding the cash flow to suppliers, cash flow to shareholders, net spending on fixed assets, and the recovered working capital.
Here's the step-by-step calculation:
- Cash flow to suppliers: $2,840
- Cash flow to shareholders: $1,630
- Net spending on fixed assets: $1,420
- Recovered working capital: $330
Add all these together:
1,630 (cash flow to shareholders) + 330 (recovered working capital) = $5,560
So, the company's operating cash flows is $5,560.
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