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?

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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