In period 1, a firm's income statement shows sales of $1, 100, cost of goods sold of $750, depreciation of $100, interest of $50, and dividends of $25. At time 0, current assets were $180 and current liabilities were $120. At time 1, current assets were $250 and current liabilities were $150. In period 1, the firm bought $50 of equity and sold $20 of debt. The firm did not sell any equity or buy any debt in period 1. The tax rate is 20%.
Find operating cash flow.
Find cash flow to debtholders and cash flow to equityholders.
Find net capital spending.