The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $1.87 million, and the 2018 balance sheet showed long-term debt of $2.21 million. The 2018 income statement showed an interest expense of $255,000. During 2018, Kerber's Tennis Shop, Inc., realized the following: Cash flow to creditors Cash flow to stockholders -$ 85,000 $170,000 Suppose you also know that the firm's net capital spending for 2018 was $1,250,000, and that the firm reduced its net working capital investment by $45,000.

The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $1.87 million, and the 2018 balance sheet showed long-term debt of $2.21 million. The 2018 income statement showed an interest expense of $255,000. During 2018, Kerber's Tennis Shop, Inc., realized the following: Cash flow to creditors Cash flow to stockholders -$ 85,000 $170,000 Suppose you also know that the firm's net capital spending for 2018 was $1,250,000, and that the firm reduced its net working capital investment by $45,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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