Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The 2017 balance sheet of Kerber's Tennis Shop, Inc. showed long term debt of $5.8 million, and the 2018 balance sheet showed long term debt

The 2017 balance sheet of Kerber's Tennis Shop, Inc. showed long term debt of $5.8 million, and the 2018 balance sheet showed long term debt of $6.2 million. The 2018 income statement showed an interest expense of $205,000. During 2018, the company had a cash flow to creditors of $0 and the cash flow to stockholders for the year was $85,000. Suppose you also know that the firms net capital spending for 2018 was $1,445,000, ad that the firm reduced its net working capital investment by $85,000

What was the firms 2018 operating cash flow, or OCF?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics Of Money Banking And Financial Markets

Authors: Frederic S. Mishkin

6th Edition

0321113624, 978-0321113627

More Books

Students also viewed these Finance questions

Question

642/3 Simplify without using a calculator.

Answered: 1 week ago

Question

suggest a range of work sample exercises and design them

Answered: 1 week ago