# You have gathered this information on JJ Enterprises: Please include formula What is the cash...

## Question:

You have gathered this information on JJ Enterprises: Please include formula What is the cash flow from assets for 2015?

 Particulars 2014 2015 Sales $6,318$7,202 COGS $3,945$4,460 interest $303$277 Depreciation $1,204$1,196 Cash $672$418 Accounts receivables $601$578 Current liabilities $414$463 Inventory $1,215$1,598 Long term debt $4780$4,103 Net fixed assets $7,700$7,330 Shareholder's equity $4,994$5,358 Taxes $217$317

What is the cash flow from assets for 2015?

## Cash flow from Assets:

Cash flow from assets is the cumulative total of all cash flows that is generated from the assets of a business. Basically it represents the cash flow the investment (asset) spins off based on its existing capital structure and operation. It is important to the potential investors to know how the company is comfortable to services the future liabilities if required.

Cash flow from assets = Cash flow to creditors + Cash flow to stockholders

Cash flow to creditors = Interest paid - Net new borrowing {eq}= $277 - ($4,103 - $4780) =$ 954 {/eq}

Cash flow to stockholders = Dividends paid - Net new equity {eq}= 0 - ($5,358-$4,994) = -$364 {/eq} So, Cash flow from assets {eq}=$ 954 + (-$364 )=$ 590 {/eq}