Question
The 2017 balance sheet of Kerbers Tennis Shop, Inc., showed $2.75 million in long-term debt, $740,000 in the common stock account, and $6.25 million in
The 2017 balance sheet of Kerbers Tennis Shop, Inc., showed $2.75 million in long-term debt, $740,000 in the common stock account, and $6.25 million in the additional paid-in surplus account. The 2018 balance sheet showed $3.3 million, $975,000, and $8.4 million in the same three accounts, respectively. The 2018 income statement showed an interest expense of $290,000. The company paid out $540,000 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 $205,000, what was the firm's 2018 operating cash flow, or OCF?
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$2,515,000
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$-3,770,000
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$-2,105,000
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$-2,600,000
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$-1,520,000
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