14. Calculating Total Cash Flows.
addition to retained earnings, so the remainder must have been the sale of new equity. Now we can calculate the cash flow to stockholders as: Cash flow to stockholders = Dividends paid – Net new equity Cash flow to stockholders = $12,000 – 6,499 Cash flow to stockholders = $5,501 The company paid $5,120 to creditors and $5,501 to stockholders. ................
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