Given the information for Sugarpova's Tennis Shop, Inc., in Problems 10 and 11, suppose you also know

Question:

Given the information for Sugarpova's Tennis Shop, Inc., in Problems 10 and 11, suppose you also know that the firm's net capital spending for 2015 was $1,250,000 and that the firm reduced its net working capital investment by $45,000. What was the firm's 2015 operating cash flow, or OCF?  

Data From Problem 10:

The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long-term debt of $1.95 million, and the 2015 balance sheet showed long-term debt of $2.28 million. The 2015 income statement showed an interest expense of $235,000. What was the firm's cash flow to creditors during 2015? 

Data From Problem 11:

The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed $670,000 in the common stock account and $4.1 million in the additional paid-in surplus account. The 2015 balance sheet showed $825,000 and $4.4 million in the same two accounts, respectively. If the company paid out $565,000 in cash dividends during 2015, what was the cash flow to stockholders for the year?

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Related Book For  book-img-for-question

Fundamentals of Corporate Finance

ISBN: 978-0077861704

11th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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