The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $2.7 million, and the 2018 balance sheet showed long-term debt of $2.9 million. The 2018 income statement showed an interest expense of $140,000. During 2018, the company had a cash flow to creditors of –$60,000 and the cash flow to stockholders for the year was $70,000. Suppose you also know that the firm’s net capital spending for 2018 was $1,320,000, and that the firm reduced its net working capital investment by $59,000. What was the firm’s 2018 operating cash flow, or OCF? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Answer rating: 100% (QA)

To calculate the firms operating cash flow OCF for 2018 we can use the following formula OCF EBIT De... View the full answer