Question: The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $5.4 million, and the 2018 balance sheet showed long-term debt of $5.6

The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $5.4 million, and the 2018 balance sheet showed long-term debt of $5.6 million. The 2018 income statement showed an interest expense of $175,000. During 2018, the company had a cash flow to creditors of $25,000 and the cash flow to stockholders for the year was $80,000. Suppose you also know that the firm’s net capital spending for 2018 was $1,390,000, and that the firm reduced its net working capital investment by $73,000. What was the firm’s 2017 operating cash flow, or OCF

Step by Step Solution

3.41 Rating (160 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To determine the firms 2017 operating cash flow OCF well use the cash flow identity tex... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (2 attachments)

PDF file Icon

60959eec96525_26062.pdf

180 KBs PDF File

Word file Icon

60959eec96525_26062.docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!