The 2020 balance sheet of Osaka's Tennis Shop, Inc., showed long-term debt of $2.25 million, and the 2021 balance sheet showed long-term debt of $2.66 million. The 2021 income statement showed an interest expense of $305,000. The balance sheet also showed $780,000 in the common stock account and $4.78 million in the additional paid-in surplus account. The 2021 balance sheet showed $965,000 and $5.04 million in the same two accounts, respectively. The company paid out $654,000 in cash dividends during 2021. You also know that the firm's net capital spending for 2021 was $1.5 million and that the firm reduced its net working capital investment by $55,000. What was the firm's 2021 operating cash flow, or OCF? Input area:
The 2020 balance sheet of Osaka's Tennis Shop, Inc., showed long-term debt of $2.25 million, and the 2021 balance sheet showed long-term debt of $2.66 million. The 2021 income statement showed an interest expense of $305,000. The balance sheet also showed $780,000 in the common stock account and $4.78 million in the additional paid-in surplus account. The 2021 balance sheet showed $965,000 and $5.04 million in the same two accounts, respectively. The company paid out $654,000 in cash dividends during 2021. You also know that the firm's net capital spending for 2021 was $1.5 million and that the firm reduced its net working capital investment by $55,000. What was the firm's 2021 operating cash flow, or OCF? Input area:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:(Use cells A6 to B15 from the given information to complete this question.)
Output area:
Cash flow to creditors
Beginning equity
Ending equity
Cash flow to stockholders
Cash flow from assets
Operating cash flow
($105,000)
($10,911,000)
Transcribed Image Text:The 2020 balance sheet of Osaka's Tennis Shop, Inc., showed long-term debt of $2.25 million, and the 2021 balance
sheet showed long-term debt of $2.66 million. The 2021 income statement showed an interest expense of
$305,000. The balance sheet also showed $780,000 in the common stock account and $4.78 million in the
additional paid-in surplus account. The 2021 balance sheet showed $965,000 and $5.04 million in the same two
accounts, respectively. The company paid out $654,000 in cash dividends during 2021. You also know that the
firm's net capital spending for 2021 was $1.5 million and that the firm reduced its net working capital investment
by $55,000. What was the firm's 2021 operating cash flow, or OCF?
Input area:
Dec. 31, 2020 Long-term debt
Dec. 31, 2021 Long-term debt
Interest expense
Dec. 31, 2020 Common stock
Dec. 31, 2020 Additional paid-in surplus
Dec. 31, 2021 Common stock
Dec. 31, 2021 Additional paid-in surplus
Cash dividends
2021 Net capital spending
Change in net working capital
$2,250,000
$2,660,000
$305,000
$780,000
$4,780,000
$965,000
$5,040,000
$654,000
$1,500,000
($55,000)
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