The 2017 balance sheet of Kerber's Tennis Shop, Incorporated, showed $2.95 million in long-term debt, $730,000 in the common stock account, and $6.15 million in the additional paid-in surplus account. The 2018 balance sheet showed $4 million, $905,000, and $8.45 million in the same three accounts, respectively. The 2018 income statement showed an interest expense of $270,000. The company paid out $660,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $860,000, and the firm reduced its net working capital investment by $155,000, what was the film's 2018 operating cash flow, or OCF? Multiple Choice $-4,620,000 O $2,595,000 O $2,905,000 $-1,890,000 O$-3.210,000
The 2017 balance sheet of Kerber's Tennis Shop, Incorporated, showed $2.95 million in long-term debt, $730,000 in the common stock account, and $6.15 million in the additional paid-in surplus account. The 2018 balance sheet showed $4 million, $905,000, and $8.45 million in the same three accounts, respectively. The 2018 income statement showed an interest expense of $270,000. The company paid out $660,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $860,000, and the firm reduced its net working capital investment by $155,000, what was the film's 2018 operating cash flow, or OCF? Multiple Choice $-4,620,000 O $2,595,000 O $2,905,000 $-1,890,000 O$-3.210,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:The 2017 balance sheet of Kerber's Tennis Shop, Incorporated, showed $2.95 million in
long-term debt, $730,000 in the common stock account, and $6.15 million in the
additional paid-in surplus account. The 2018 balance sheet showed $4 million,
$905,000, and $8.45 million in the same three accounts, respectively. The 2018 income
statement showed an interest expense of $270,000. The company paid out $660,000 in
cash dividends during 2018. If the firm's net capital spending for 2018 was $860,000,
and the firm reduced its net working capital investment by $155,000, what was the film's
2018 operating cash flow, or OCF?
Multiple Choice
$-4,620,000
O $-2,595,000
O $2,905,000
O $-1,890,000
O $-3.210,000
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