Question
The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $5.2 million, and the 2018 balance sheet showed long-term debt of $5.3
The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $5.2 million, and the 2018 balance sheet showed long-term debt of $5.3 million. The 2018 income statement showed an interest expense of $170,000. During 2018, the company had a cash flow to creditors of $70,000 and the cash flow to stockholders for the year was $75,000. Suppose you also know that the firm's net capital spending for 2018 was $1,380,000, and that the firm reduced its net working capital investment by $71,000.
What was the firm's 2018 operating cash flow, or OCF?
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