The 2017 balance sheet of Kerber's Tennis Shop, Incorporated, showed $3.05 million in long-term debt, $790,000 in the common stock account, and $6.05 million in the additional paid-in surplus account. The 2018 balance sheet showed $3.8 million, $905,000, and $8.45 million in the same three accounts, respectively. The 2018 income statement showed an interest expense of $300,000. The company paid out $660,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $790,000, and the firm reduced its net working capital investment by $165,000, what was the firm's 2018 operating cash flow, or OCF? Multiple Choice O $-2,305,000 $-3,000,000 $2,635,000 $-1,680,000 $-4,250,000
The 2017 balance sheet of Kerber's Tennis Shop, Incorporated, showed $3.05 million in long-term debt, $790,000 in the common stock account, and $6.05 million in the additional paid-in surplus account. The 2018 balance sheet showed $3.8 million, $905,000, and $8.45 million in the same three accounts, respectively. The 2018 income statement showed an interest expense of $300,000. The company paid out $660,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $790,000, and the firm reduced its net working capital investment by $165,000, what was the firm's 2018 operating cash flow, or OCF? Multiple Choice O $-2,305,000 $-3,000,000 $2,635,000 $-1,680,000 $-4,250,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The 2017 balance sheet of Kerber's Tennis Shop, Incorporated, showed $3.05 million in
long-term debt, $790,000 in the common stock account, and $6.05 million in the
additional paid-in surplus account. The 2018 balance sheet showed $3.8 million,
$905,000, and $8.45 million in the same three accounts, respectively. The 2018 income
statement showed an interest expense of $300,000. The company paid out $660,000 in
cash dividends during 2018. If the firm's net capital spending for 2018 was $790,000,
and the firm reduced its net working capital investment by $165,000, what was the firm's
2018 operating cash flow, or OCF?
Multiple Choice
O
O
$-2,305,000
$-3,000,000
$2,635,000
$-1,680,000
$-4,250,000
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