Question
The 2017 balance sheet of Kerbers Tennis Shop, Incorporated, showed $2.1 million in long-term debt, $720,000 in the common stock account, and $6.1 million in
The 2017 balance sheet of Kerbers Tennis Shop, Incorporated, showed $2.1 million in long-term debt, $720,000 in the common stock account, and $6.1 million in the additional paid-in surplus account. The 2018 balance sheet showed $3.55 million, $915,000, and $8.65 million in the same three accounts, respectively. The 2018 income statement showed an interest expense of $240,000. The company paid out $630,000 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 $155,000, what was the firm's 2018 operating cash flow, or OCF? Multiple Choice
A $-3,325,000
B $3,635,000
C $-3,920,000
D $-5,250,000
E $-2,660,000
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