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The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long- term debt of $6.1 million, and the 2015 balance sheet showed long- term debt of $6.3 million. The 2015 income statement showed an interest expense of $210,000. During 2015, the company had a cash flow to creditors of $10,000 and the cash flow to stockholders for the year was $65,000. Suppose you also know that the firm's net capital spending for 2015 was $1,460,000 and that the firm reduced its net working capital investment by $87,000. 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 $6.1 million, and the 2015 balance sheet showed long- term debt of $6.3 million. The 2015 income statement showed an interest expense of $210,000. During 2015, the company had a cash flow to creditors of $10,000 and the cash flow to stockholders for the year was $65,000. Suppose you also know that the firm's net capital spending for 2015 was $1,460,000 and that the firm reduced its net working capital investment by $87,000. What was the firm's 2015 operating cash flow, or OCF?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long- term debt of $6.1 million, and the 2015 balance sheet showed long- term debt of $6.3 million. The 2015 income statement showed an interest expense of $210,000. During 2015, the company had a cash flow to creditors of $10,000 and the cash flow to stockholders for the year was $65,000. Suppose you also know that the firm's net capital spending for 2015 was $1,460,000 and that the firm reduced its net working capital investment by $87,000. What was the firm's 2015 operating cash flow, or OCF?
Transcribed Image Text:The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long- term debt of $6.1 million, and the 2015 balance sheet showed long- term debt of $6.3 million. The 2015 income statement showed an interest expense of $210,000. During 2015, the company had a cash flow to creditors of $10,000 and the cash flow to stockholders for the year was $65,000. Suppose you also know that the firm's net capital spending for 2015 was $1,460,000 and that the firm reduced its net working capital investment by $87,000. What was the firm's 2015 operating cash flow, or OCF?
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