Question
The 2018 balance sheet of Speiths Golf Shop, Inc., showed long-term debt of $6.5 million, and the 2019 balance sheet showed long-term debt of $6.75
The 2018 balance sheet of Speiths Golf Shop, Inc., showed long-term debt of $6.5 million, and the 2019 balance sheet showed long-term debt of $6.75 million. The 2019 income statement showed an interest expense of $230,000. The 2018 balance sheet showed $640,000 in the common stock account and $5.8 million in the additional paid-in surplus account. The 2019 balance sheet showed $680,000 and $6.3 million in the same two accounts, respectively. The company paid out $625,000 in cash dividends during 2019. Suppose you also know that the firms net capital spending for 2019 was $1,500,000, and that the firm reduced its net working capital investment by $95,000.What was the firms 2019 operating cash flow, or OCF?
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