Item	Prior year	Current year
Accounts payable	8,138.00	7,771.00
Accounts receivable	6,043.00	6,614.00
Accruals	1,012.00	1,670.00
Cash	???	???
Common Stock	11,200.00	12,694.00
COGS	12,715.00	18,362.00
Current portion long-term debt	5,056.00	4,902.00
Depreciation expense	2,500	2,778.00
Interest expense	733	417
Inventories	4,231.00	4,789.00
Long-term debt	14,750.00	13,869.00
Net fixed assets	50,492.00	54,598.00
Notes payable	4,328.00	9,814.00
Operating expenses (excl. depr.)	13,977	18,172
Retained earnings	28,402.00	29,125.00
Sales	35,119	46,235.00
Taxes	2,084	2,775
What is the firm's cash flow from financing?

To calculate the firm's cash flow from financing (CFF), we need to assess changes in the firm's financing activities, which typically include changes in debt (both short-term and long-term), issuance or repurchase of equity (common stock), and dividends paid.

Here’s how we can approach it step-by-step using the provided information:

### 1. **Changes in Debt (Financing Activities)**
   - **Current portion of long-term debt**: This represents the portion of long-term debt due within a year.
     - Change: $ 4,902 - 5,056 = -154 $
   - **Long-term debt**: This is the debt that is not due within a year.
     - Change: $ 13,869 - 14,750 = -881 $
   - **Notes payable**: Short-term obligations like notes payable are also considered in financing.
     - Change: $ 9,814 - 4,328 = 5,486 $

### 2. **Changes in Equity**
   - **Common stock**: This represents equity raised by issuing stock.
     - Change: $ 12,694 - 11,200 = 1,494 $
   - **Retained earnings**: This reflects profits retained by the company after dividends have been paid.
     - Change: $ 29,125 - 28,402 = 723 $

However, **retained earnings** can be tricky. Part of this amount includes net income, which affects cash flow from operations, not financing. We need to isolate any dividends paid, if information was available, but since it isn't mentioned explicitly, we'll focus on other financing items. 

### 3. **Summing Up the Cash Flow from Financing**
   - Change in current portion of long-term debt: $ -154 $
   - Change in long-term debt: $ -881 $
   - Change in notes payable: $ +5,486 $
   - Change in common stock: $ +1,494 $

### Cash Flow from Financing (CFF)
\[
\text{CFF} = (-154) + (-881) + 5,486 + 1,494 = 5,945
\]

### Conclusion:
The firm's cash flow from financing is **$5,945**.

Would you like more details on the calculation process or have any questions?

Here are five related questions:
1. How do changes in working capital affect cash flow from operations?
2. What is the relationship between retained earnings and dividends?
3. How is cash flow from investing different from cash flow from financing?
4. What factors could lead to a decrease in long-term debt over time?
5. How does depreciation affect cash flow and profitability?

**Tip:** Always separate cash flows into operating, investing, and financing sections to better understand the sources and uses of cash.

What is the firm's cash flow from financing based on the provided financial data?

Learn how to calculate the firm's cash flow from financing using financial data, including changes in debt, common stock, and retained earnings. This problem explores key corporate finance concepts, such as cash flow analysis, financing activities, and interpreting financial statements.

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