Question
The 2017 balance sheet of Kerbers Tennis Shop, Inc., showed $2.9 million in long-term debt, $740,000 in the common stock account, and $5.95 million in
The 2017 balance sheet of Kerbers Tennis Shop, Inc., showed $2.9 million in long-term debt, $740,000 in the common stock account, and $5.95 million in the additional paid-in surplus account. The 2018 balance sheet showed $3.95 million, $935,000, and $8.2 million in the same three accounts, respectively. The 2018 income statement showed an interest expense of $210,000. The company paid out $700,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $750,000, 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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