Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The 2010 balance sheet of Maria's Tennis Shop, Inc., showed long-term debt of $5.6 million, and the 2011 balance sheet showed long-term debt of $5.80

The 2010 balance sheet of Maria's Tennis Shop, Inc., showed long-term debt of $5.6 million, and the 2011 balance sheet showed long-term debt of $5.80 million. The 2011 income statement showed an interest expense of $185,000. During 2011, Marias Tennis Shop, Inc. realized the following:

Cash flow to creditors $ -15,000
Cash flow to stockholders $ 65,000

Suppose you also know that the firms net capital spending for 2011 was $1,410,000, and that the firm reduced its net working capital investment by $77,000.

What was the firms 2011 operating cash flow, or OCF? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.)

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

Inside Private Equity

Authors: James M. Kocis, James C. Bachman IV, Austin M. Long III, Craig J. Nickels

1st Edition

0470421894, 978-0470421895

More Books

Students also viewed these Finance questions

Question

What is the relationship between humans and nature?

Answered: 1 week ago