FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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am.184.

The 2020 balance sheet of Osaka's Tennis Shop, Incorporated, showed long-term debt
of $5.7 million, and the 2021 balance sheet showed long-term debt of $5.9 million. The
2021 income statement showed an interest expense of $190,000. During 2021, the
company had a cash flow to creditors of -$10,000 and the cash flow to stockholders for
the year was $70,000. Suppose you also know that the firm's net capital spending for
2021 was $1.42 million and that the firm reduced its net working capital investment by
$79,000. What was the firm's 2021 operating cash flow, or OCF? (Enter your answer in
dollars, not millions of dollars, e.g., 1,234,567.)
Operating cash flow
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Transcribed Image Text:The 2020 balance sheet of Osaka's Tennis Shop, Incorporated, showed long-term debt of $5.7 million, and the 2021 balance sheet showed long-term debt of $5.9 million. The 2021 income statement showed an interest expense of $190,000. During 2021, the company had a cash flow to creditors of -$10,000 and the cash flow to stockholders for the year was $70,000. Suppose you also know that the firm's net capital spending for 2021 was $1.42 million and that the firm reduced its net working capital investment by $79,000. What was the firm's 2021 operating cash flow, or OCF? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) Operating cash flow
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