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The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed $2.95 million in long-term debt, $760,000...

The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed $2.95 million in long-term debt, $760,000 in the common stock account, and $6.1 million in the additional paid-in surplus account. The 2018 balance sheet showed $4 million, $935,000, and $7.75 million in the same three accounts, respectively. The 2018 income statement showed an interest expense of $210,000. The company paid out $670,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $810,000, and the firm reduced its net working capital investment by $175,000, what was the firm's 2018 operating cash flow, or OCF?

Multiple Choice

  • $-3,970,000

  • $2,345,000

  • $-2,700,000

  • $-1,360,000

Solutions

Expert Solution

Operating cash flow:

Formula:

jeff jeffy answered 2 years ago
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