The 2021 balance sheet of Speith's Golf Shop, Inc., showed long-term debt of $3.3 million, and the 2022 balance sheet showed long-term debt of $3.55 million. The 2022 income statement showed an interest expense of $155,000. The 2021 balance sheet showed $490,000 in the common stock account and $2.2 million in the additional paid-in surplus account. The 2022 balance sheet showed $530,000 and $2.4 million in the same two accounts, respectively. The company paid out $400,000 in cash dividends during 2022. Suppose you also know that the firm's net capital spending for 2022 was $1,350,000, and that the firm reduced its net working capital investment by $65,000. What was the firm's 2022 operating cash flow, or OCF?
The 2021 balance sheet of Speith's Golf Shop, Inc., showed long-term debt of $3.3 million, and the 2022 balance sheet showed long-term debt of $3.55 million. The 2022 income statement showed an interest expense of $155,000. The 2021 balance sheet showed $490,000 in the common stock account and $2.2 million in the additional paid-in surplus account. The 2022 balance sheet showed $530,000 and $2.4 million in the same two accounts, respectively. The company paid out $400,000 in cash dividends during 2022. Suppose you also know that the firm's net capital spending for 2022 was $1,350,000, and that the firm reduced its net working capital investment by $65,000. What was the firm's 2022 operating cash flow, or OCF?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
DO NOT GIVE SOLUTION IN IMAGE
Transcribed Image Text:The 2021 balance sheet of Speith's Golf Shop, Inc., showed long-term debt of $3.3
million, and the 2022 balance sheet showed long-term debt of $3.55 million. The
2022 income statement showed an interest expense of $155,000. The 2021
balance sheet showed $490,000 in the common stock account and $2.2 million in
the additional paid-in surplus account. The 2022 balance sheet showed $530,000
and $2.4 million in the same two accounts, respectively. The company paid out
$400,000 in cash dividends during 2022. Suppose you also know that the firm's
net capital spending for 2022 was $1,350,000, and that the firm reduced its net
working capital investment by $65,000.
What was the firm's 2022 operating cash flow, or OCF?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education