Given the information for Roger’s Tennis Shop Inc. in Problem 11 and 12, suppose you also know the firm’s net capital spending for 2011 was $940,000, and that the firm reduced its net working capital investment by $85,000. What was the firm’s 2012 operating cash flow, or OCF?

Data from Problem 11 and Problem 12

The 2011 statement of financial position of Roger’s Tennis Shop Inc. showed long-term debt of $2.6 million, and the 2012 statement of financial position showed long term debt of $2.9 million. The 2012 Statement of Comprehensive Income showed an interest expense of $170,000. 

The 2011 statement of financial position of Roger’s Tennis Shop Inc. showed $740,000 in the common stock account and $5.2 million in the additional retained earnings account. The 2012 statement of financial position showed $815,000 and $5.5 million in the same two accounts, respectively.