Final answer:
The Underground Cafe has generated operating cash flow of $200,000 and cash flow to creditors of $98,400. The reduction in net working capital by $30,000 indicates a change in current assets or liabilities. Further information is needed to determine the overall cash flow.
Step-by-step explanation:
The operating cash flow of the Underground Cafe is $200,000. This represents the cash generated from the cafe's normal business operations. The cash flow to creditors, on the other hand, is $98,400, which represents the cash paid to lenders or creditors as interest or principal payments.
The reduction in net working capital by $30,000 indicates that the cafe has reduced its current assets (such as cash, accounts receivable, and inventory) or increased its current liabilities (such as accounts payable and accrued expenses) by that amount. This reduction in net working capital can affect the availability of cash for operating and investment activities of the cafe.
To determine the overall cash flow of the cafe, we need more information about the cash flow from investing activities and financing activities, as well as any non-operating cash flow items, such as taxes or extraordinary gains/losses. These additional details will provide a complete picture of the cafe's cash flow for the past year.