Question
The 2017 balance sheet of Kerbers Tennis Shop, Incorporated, showed $2.9 million in long-term debt, $720,000 in the common stock account, and $6.25 million in
The 2017 balance sheet of Kerbers Tennis Shop, Incorporated, showed $2.9 million in long-term debt, $720,000 in the common stock account, and $6.25 million in the additional paid-in surplus account. The 2018 balance sheet showed $3.75 million, $925,000, and $8.35 million in the same three accounts, respectively. The 2018 income statement showed an interest expense of $210,000. The company paid out $530,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $820,000, and the firm reduced its net working capital investment by $195,000, what was the firm's 2018 operating cash flow, or OCF?
-
$-2,850,000
-
$2,805,000
-
$-4,100,000
-
$-1,790,000
-
$-2,415,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started