The 2023 balance sheet of Swiatek’s Tennis Shop, Incorporated, showed long-term debt of $2.4 million, and the 2024 balance sheet showed long-term debt of $2.73 million. The 2024 income statement showed an interest expense of $265,000. During 2024, the firm realized the following: Cash flow to creditors −$ 65,000 Cash flow to stockholders $ 309,000 Suppose you also know that the firm’s net capital spending for 2024 was $1.5 million and that the firm reduced its net working capital investment by $55,000. What was the firm’s 2024 operating cash flow, or OCF?
The 2023 balance sheet of Swiatek’s Tennis Shop, Incorporated, showed long-term debt of $2.4 million, and the 2024 balance sheet showed long-term debt of $2.73 million. The 2024 income statement showed an interest expense of $265,000. During 2024, the firm realized the following: Cash flow to creditors −$ 65,000 Cash flow to stockholders $ 309,000 Suppose you also know that the firm’s net capital spending for 2024 was $1.5 million and that the firm reduced its net working capital investment by $55,000. What was the firm’s 2024 operating cash flow, or OCF?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The 2023 balance sheet of Swiatek’s Tennis Shop, Incorporated, showed long-term debt of $2.4 million, and the 2024 balance sheet showed long-term debt of $2.73 million. The 2024 income statement showed an interest expense of $265,000. During 2024, the firm realized the following:
| Cash flow to creditors | −$ 65,000 |
|---|---|
| Cash flow to stockholders | $ 309,000 |
Suppose you also know that the firm’s net capital spending for 2024 was $1.5 million and that the firm reduced its net
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