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The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed $890,000 in the common stock account and $6.4 million in the additional paid-in surplus account.

The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed $890,000 in the common stock account and $6.4 million in the additional paid-in surplus account. The 2018 balance sheet showed $925,000 and $8.1 million in the same two accounts, respectively. If the company paid out $580,000 in cash dividends during 2018, what was the cash flow to stockholders for the year?

  • $1,155,000
  • $8,445,000
  • $-1,155,000
  • $345,000
  • $310,000

The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed $2.2 million in long-term debt,$750,000 in the common stock account, and $6.2 million in the additional paid-in surplus account. The 2018 balance sheet showed $3.7 million, $895,000, and $8.65 million in the same three accounts, respectively. The 2018 income statement showed an interest expense of $280,000. The company paid out $500,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $790,000, and the firm reduced its net working capital investment by $125,000, what was the firm's 2018 operating cash flow, or OCF?

  • $-2,650,000
  • $-3,650,000
  • $-3,315,000
  • $-4,980,000
  • $3,565,000

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