Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN: 9780357033609
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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The 2017 balance sheet of Kerber's Tennis
Shop, Inc., showed long-term debt of $3.1
million, and the 2018 balance sheet showed
long-term debt of $3.2 million. The 2018 income
statement showed an interest expense of
$150,000. During 2018, the company had a cash
flow to creditors of $50,000 and the cash flow
to stockholders for the year was $90,000.
Suppose you also know that the firm's net
capital spending for 2018 was $1,340,000 and
that the firm reduced its net working capital
investment by $63,000. What was the firm's
2018 operating cash flow, or OCF?
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Transcribed Image Text:The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $3.1 million, and the 2018 balance sheet showed long-term debt of $3.2 million. The 2018 income statement showed an interest expense of $150,000. During 2018, the company had a cash flow to creditors of $50,000 and the cash flow to stockholders for the year was $90,000. Suppose you also know that the firm's net capital spending for 2018 was $1,340,000 and that the firm reduced its net working capital investment by $63,000. What was the firm's 2018 operating cash flow, or OCF?
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Pfin (with Mindtap, 1 Term Printed Access Card) (...
Finance
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Cengage Learning