Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The 2020 balance sheet of Osakas Tennis Shop, Incorporated, showed long-term debt of $5.2 million, and the 2021 balance sheet showed long-term debt of $5.45

The 2020 balance sheet of Osakas Tennis Shop, Incorporated, showed long-term debt of $5.2 million, and the 2021 balance sheet showed long-term debt of $5.45 million. The 2021 income statement showed an interest expense of $170,000. The 2020 balance sheet showed $520,000 in the common stock account and $5.5 million in the additional paid-in surplus account. The 2021 balance sheet showed $560,000 and $5.7 million in the same two accounts, respectively. The company paid out $415,000 in cash dividends during 2021. Suppose you also know that the firms net capital spending for 2021 was $1,380,000, and that the firm reduced its net working capital investment by $71,000. What was the firms 2021 operating cash flow, or OCF

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions