Below Is Information from the Statement of Cash Flow and Income

question 13

Essay

Below is information from the statement of cash flow and income statement for Garland Products,Inc.for 2012 and 2011.Marketable securities represent investments of excess cash that Garland Products does not need for operations.Garland Products' tax rate is 35%.
Using the above information calculate the amount of free cash flows to all debt and equity capital stakeholders for Garland Products for year 2012 and 2011.

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Definitions:

Fiscal Policy

A government's strategy for managing its budget through taxation and spending to influence the economy.

Tax Cuts

Reductions in the amount of taxes imposed by the government.

Government Spending

The total amount of money spent by government entities on goods, services, and public projects to fulfill their objectives and responsibilities.

Real Balances Effect

The impact of changing prices on the purchasing power of individuals' money holdings, influencing consumption and savings decisions.