Question
The 2011 balance sheet of Annas Tennis Shop, Inc., showed long-term debt of $5.8 million, and the 2012 balance sheet showed long-term debt of $6.05
The 2011 balance sheet of Annas Tennis Shop, Inc., showed long-term debt of $5.8 million, and the 2012 balance sheet showed long-term debt of $6.05 million. The 2012 income statement showed an interest expense of $195,000. The 2011 balance sheet of Anna's Tennis Shop, Inc., showed $570,000 in the common stock account and $2.4 million in the additional paid-in surplus account. The 2012 balance sheet showed $610,000 and $2.8 million in the same two accounts, respectively. The company paid out $565,000 in cash dividends during 2012. Suppose you also know that the firm's net capital spending for 2012 was $1,430,000, and that the firm reduced its net working capital investment by $81,000.
What was the firm's 2012 operating cash flow, or OCF?
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