Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The 2020 balance sheet of Osaka's Tennis Shop, Incorporated, showed long-term debt of $6.4 million, and the 2021 balance sheet showed long-term debt of $6.6

The 2020 balance sheet of Osaka's Tennis Shop, Incorporated, showed long-term debt of $6.4 million, and the 2021 balance sheet showed long-term debt of $6.6 million. The 2021 income statement showed an interest expense of $225,000. During 2021, the company had a cash flow to creditors of $25,000 and the cash flow to stockholders for the year was $80,000. Suppose you also know that the firms net capital spending for 2021 was $1.49 million and that the firm reduced its net working capital investment by $93,000. 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 to Expert-Tailored 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

Recommended Textbook for

Forecasting Principles And Practice

Authors: Rob J Hyndman, George Athanasopoulos

1st Edition

0987507109, 978-0987507105

More Books

Students also viewed these Finance questions