Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The 2014 balance sheet of Jordans Golf Shop, Inc., showed long-term debt of $6 million, and the 2015 balance sheet showed long-term debt of $6.25

The 2014 balance sheet of Jordan’s Golf Shop, Inc., showed long-term debt of $6 million, and the 2015 balance sheet showed long-term debt of $6.25 million. The 2015 income statement showed an interest expense of $205,000. The 2014 balance sheet showed $590,000 in the common stock account and $4.8 million in the additional paid-in surplus account. The 2015 balance sheet showed $630,000 and $5.3 million in the same two accounts, respectively. The company paid out $600,000 in cash dividends during 2015. Suppose you also know that the firm’s net capital spending for 2015 was $1,450,000, and that the firm reduced its net working capital investment by $85,000. What was the firm’s 2015 operating cash flow, or OCF?

Step by Step Solution

3.40 Rating (147 Votes )

There are 3 Steps involved in it

Step: 1

Operating cash flow 1416000 Explanation Cash flow to creditors Interest paid Net new bo... 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

Corporate Finance

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

11th edition

77861752, 978-0077861759

More Books

Students also viewed these Accounting questions