The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long- term debt of $3.3 million, and the 2015 balance sheet showed long-term debt of $3.4 million. The 2015 income statement showed an interest expense of $155,000. During 2015, the company had a cash flow to creditors of $55,000 and the cash flow to stockholders for the year was $60,000. Suppose you also know that the firm s net capital spending for 2015 was $1,350,000 and that the firm reduced its net working capital investment by $65,000. What was the firm's 2015 operating cash flow, or OCF?
The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long- term debt of $3.3 million, and the 2015 balance sheet showed long-term debt of $3.4 million. The 2015 income statement showed an interest expense of $155,000. During 2015, the company had a cash flow to creditors of $55,000 and the cash flow to stockholders for the year was $60,000. Suppose you also know that the firm s net capital spending for 2015 was $1,350,000 and that the firm reduced its net working capital investment by $65,000. What was the firm's 2015 operating cash flow, or OCF?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long-
term debt of $3.3 million, and the 2015 balance sheet showed long-term
debt of $3.4 million. The 2015 income statement showed an interest
expense of $155,000. During 2015, the company had a cash flow to
creditors of $55,000 and the cash flow to stockholders for the year was
$60,000. Suppose you also know that the firm s net capital spending for
2015 was $1,350,000 and that the firm reduced its net working capital
investment by $65,000.
What was the firm's 2015 operating cash flow, or OCF?
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