Question
The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $5.6 million, and the 2018 balance sheet showed long-term debt of $5.8
The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $5.6 million, and the 2018 balance sheet showed long-term debt of $5.8 million. The 2018 income statement showed an interest expense of $185,000. During 2018, the company had a cash flow to creditors of -$15,000 and the cash flow to stockholders for the year was $65,000. Suppose you also know that the firm's net capital spending for 2018 was $1,410,000, and that the firm reduced its net working capital investment by $77,000. What was the firm's 2018 operating cash flow, or OCF?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started