Given the information for Serena’s Tennis Shop, Inc., in Problems 11 and 12, suppose you also know that the firm’s net capital spending for 2002 was $600,000, and that the firm reduced its net working capital investment by $195,000. What was the firm’s 2002 operating cash flow, or OCF?

Data from problem 11

The December 31, 2001, balance sheet of Serena’s Tennis Shop, Inc., showed long-term debt of $3.1 million, and the December 31, 2002, balance sheet showed long-term debt of $3.6 million. The 2002 income statement showed an interest expense of $400,000. What was the firm’s cash flow to creditors during 2002?

Data from problem 12

The December 31, 2001, balance sheet of Serena’s Tennis Shop, Inc., showed $750,000 in the common stock account and $7.2 million in the additional paid-in surplus account. The December 31, 2002, balance sheet showed $825,000 and $7.8 million in the same two accounts, respectively. If the company paid out $500,000 in cash dividends during 2002, what was the cash flow to stockholders for the year?