The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long-term debt of $5.5 million, and the 2015 balance sheet showed long-term debt of $5.7 million. The 2015 income statement showed an interest expense of $180,000. During 2015, the company had a cash flow to creditors of -$20,000, 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 $1,400,000 and that the firm reduced its net working capital investment by $75,000. 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 $5.5 million, and the 2015 balance sheet showed long-term debt of $5.7 million. The 2015 income statement showed an interest expense of $180,000. During 2015, the company had a cash flow to creditors of -$20,000, 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 $1,400,000 and that the firm reduced its net working capital investment by $75,000. What was the firm's 2015 operating cash flow, or OCF?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The 2014 balance sheet of Sugarpova's Tennis Shop, Inc.,
showed long-term debt of $5.5 million, and the 2015
balance sheet showed long-term debt of $5.7 million. The
2015 income statement showed an interest expense
of $180,000. During 2015, the company had a cash flow to
creditors of -$20,000, 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 $1,400,000 and
that the firm reduced its net working capital investment
by $75,000. What was the firm's 2015 operating cash flow,
or OCF?
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