The Life's Good Corporation 2012 income statement shows the following:
Income Statement 2012 Sales $ 5,250,000 Costs 2,173,000 Other expenses 67,400 Depreciation expense 179,000 EBIT $ 2,830,600 Interest expense 85,555 EBT $ 2,745,045 Taxes 89,000 Net income $ 2,656,045 Dividends $ 169,000 Addition to retained earnings $ 2,487,045 Life's Good Corp. also issued $106,700 in new equity during the year and redeemed $65,300 in outstanding long-term debt.
i. Calculate the operating cash flow for the firm.
ii. Calculate the cash flow to creditors.
iii. Calculate the cash flow to stockholders.
iv. Define free cash flow (FCF) and state one of the equations for computing FCF.