Question
The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed $2.3 million in long-term debt,$730,000 in the common stock account, and $6.35 million in the
The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed $2.3 million in long-term debt,$730,000 in the common stock account, and $6.35 million in the additional paid-in surplus account. The 2018 balance sheet showed $3.8 million, $965,000, and $7.75 million in the same three accounts, respectively. The 2018 income statement showed an interest expense of $220,000. The company paid out $630,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $680,000, and the firm reduced its net working capital investment by $205,000, what was the firm's 2018 operating cash flow, or OCF?
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