Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The 2013 balance sheet of Maria's Tennis Shop, Inc., showed long-term debt of $5.4 million, and the 2014 balance sheet showed long-term debt of $5.6

The 2013 balance sheet of Maria's Tennis Shop, Inc., showed long-term debt of $5.4 million, and the 2014 balance sheet showed long-term debt of $5.6 million. The 2014 income statement showed an interest expense of $175,000. During 2014, Marias Tennis Shop, Inc., had a cash flow to creditors of -$25,000 and the cash flow to stockholders for the year was $80,000. Suppose you also know that the firms net capital spending for 2014 was $1,390,000, and that the firm reduced its net working capital investment by $73,000.

What was the firms 2014 operating cash flow, or OCF? (Do not round intermediate calculations. 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

Victorian Literature And Finance

Authors: Francis O'Gorman

1st Edition

0199281920, 978-0199281923

More Books

Students also viewed these Finance questions