Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The December 31, 2021, balance sheet of Chen, Incorporated, showed long-term debt of $1,425,000, $145,000 in the common stock account, and $2,700,000 in the additional

The December 31, 2021, balance sheet of Chen, Incorporated, showed long-term debt of $1,425,000, $145,000 in the common stock account, and $2,700,000 in the additional paid-in surplus account. The December 31, 2022, balance sheet showed long-term debt of $1,630,000, $155,000 in the common stock account and $3,000,000 in the additional paid-in surplus account. The 2022 income statement showed an interest expense of $96,500 and the company paid out $150,000 in cash dividends during 2022. The firms net capital spending for 2022 was $1,010,000, and the firm reduced its net working capital investment by $130,000. What was the firm's 2022 operating cash flow, or OCF

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To determine the firms 2022 operating cash flow OCF we can use the cash flow identity textOCF textNet Income textDepreciation textDecrease in NWC text... 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

Internal Auditors For Stock Brokers

Authors: National Institute Of Securities Markets (NISM)

1st Edition

9350717581, 978-9350717585

More Books

Students also viewed these Accounting questions

Question

u = 5 j , v = 6 i Find the angle between the vectors.

Answered: 1 week ago

Question

b. Why were these values considered important?

Answered: 1 week ago