Question
The 2017 balance sheet of Kerbers Tennis Shop, Incorporated, showed $2.9 million in long-term debt, $750,000 in the common stock account, and $6.15 million in
The 2017 balance sheet of Kerbers Tennis Shop, Incorporated, showed $2.9 million in long-term debt, $750,000 in the common stock account, and $6.15 million in the additional paid-in surplus account. The 2018 balance sheet showed $3.6 million, $905,000, and $8.45 million in the same three accounts, respectively. The 2018 income statement showed an interest expense of $260,000. The company paid out $640,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $840,000, and the firm reduced its net working capital investment by $205,000, what was the firm's 2018 operating cash flow, or OCF?
Multiple Choice $2,665,000 $-1,620,000 $-4,170,000 $-2,255,000 $-2,900,000
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