Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The 2 0 2 0 balance sheet of Osaka's Tennis Shop, Incorporated, showed long - term debt of $ 6 . 2 million, and the

The 2020 balance sheet of Osaka's Tennis Shop, Incorporated, showed long-term debt of $6.2 million, and the 2021 balance sheet showed long-term debt of $6.45 million. The 2021 income statement showed an interest expense of $215,000. The 2020 balance sheet showed $610,000 in the common stock account and $2.5 million in the additional paid-in surplus account. The 2021 balance sheet showed $650,000 and $3 million in the same two accounts, respectively. The company paid out $610,000 in cash dividends during 2021. Suppose you also know that the firm's net capital spending for 2021 was $1,470,000, and that the firm reduced its net working capital investment by $89,000.
What was the firm's 2021 operating cash flow, or OCF? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g.,1,234,567.)
Answer is complete but not entirely correct.
\table[[Operating cash flow,$2,351,000***
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Handbook Of Portfolio Mathematics

Authors: Vince

1st Edition

0471757683, 978-0471757689

More Books

Students also viewed these Finance questions

Question

Does inspection have any marketing value?

Answered: 1 week ago