The 2009 balance sheet of Anna's Tennis Shop, Inc., showed $430,000 in the common stock account and $2.6 million in the additional paid-in-surplus account. The 2010 balance sheet showed $450,000 and $3.05 million in the same two accounts, respectively. Suppose you also know that the firm's net capital spending for 2010 was $875,000 and that the firm reduced its net working capital investment by $69,000. What was the firm's 2010 operating cash flow?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 12P: Strickler Technology is considering changes in its working capital policies to improve its cash flow...
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The 2009 balance sheet of Anna's Tennis Shop, Inc., showed
$430,000 in the common stock account and $2.6 million in the
additional paid-in-surplus account. The 2010 balance sheet
showed $450,000 and $3.05 million in the same two accounts,
respectively.
Suppose you also know that the firm's net capital spending for
2010 was $875,000 and that the firm reduced its net working
capital investment by $69,000. What was the firm's 2010 operating
cash flow?
Transcribed Image Text:The 2009 balance sheet of Anna's Tennis Shop, Inc., showed $430,000 in the common stock account and $2.6 million in the additional paid-in-surplus account. The 2010 balance sheet showed $450,000 and $3.05 million in the same two accounts, respectively. Suppose you also know that the firm's net capital spending for 2010 was $875,000 and that the firm reduced its net working capital investment by $69,000. What was the firm's 2010 operating cash flow?
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