Question
The 2017 balance sheet of Kerbers Tennis Shop, Incorporated, showed $2.95 million in long-term debt, $710,000 in the common stock account, and $6.3 million in
The 2017 balance sheet of Kerbers Tennis Shop, Incorporated, showed $2.95 million in long-term debt, $710,000 in the common stock account, and $6.3 million in the additional paid-in surplus account. The 2018 balance sheet showed $3.55 million, $955,000, and $8.5 million in the same three accounts, respectively. The 2018 income statement showed an interest expense of $210,000. The company paid out $550,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $760,000, and the firm reduced its net working capital investment by $115,000, what was the firm's 2018 operating cash flow, or OCF? |
Multiple Choice
$-2,285,000
$-1,640,000
$-2,740,000
$2,515,000
$-4,030,000
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