Cash Flow Summary

I. The cash fl ow identity

Cash fl ow from assets 5 Cash fl ow to creditors (bondholders)
1 Cash fl ow to stockholders (owners)
II. Cash fl ow from assets
Cash fl ow from assets 5 Operating cash fl ow
2 Net capital spending
2 Change in net working capital (NWC)
where:
Operating cash fl ow 5 Earnings before interest and taxes (EBIT)
1 Depreciation 2 Taxes
Net capital spending 5 Ending net fi xed assets 2 Beginning net fi xed assets
1 Depreciation
Change in NWC 5 Ending NWC 2 Beginning NWC
III. Cash fl ow to creditors (bondholders)
Cash fl ow to creditors 5 Interest paid 2 Net new borrowing
IV. Cash fl ow to stockholders (owners)
Cash fl ow to stockholders 5 Dividends paid 2 Net new equity raised