Question
The 2020 balance sheet of Osaka's Tennis Shop, Incorporated, showed long-term debt of $6 million, and the 2021 balance sheet showed long-term debt of $6.2
The 2020 balance sheet of Osaka's Tennis Shop, Incorporated, showed long-term debt of $6 million, and the 2021 balance sheet showed long-term debt of $6.2 million. The 2021 income statement showed an interest expense of $205,000. During 2021, the company had a cash flow to creditors of $5,000 and the cash flow to stockholders for the year was $60,000. Suppose you also know that the firms net capital spending for 2021 was $1.45 million and that the firm reduced its net working capital investment by $85,000. What was the firms 2021 operating cash flow, or OCF? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)
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