The December 31, 2013, balance sheet of Schism, Inc., showed long-term debt of $1,400,000, $140,000 in the common stock account and $2,650,000 in the additional paid-in surplus account. The December 31, 2014, balance sheet showed long-term debt of $1,580,000, $150,000 in the common stock account and $2,950,000 in the additional paid-in surplus account. The 2014 income statement showed an interest expense of $94,000 and the company paid out $145,000 in cash dividends during 2014. The firm's net capital spending for 2014 was $960,000, and the firm reduced its net working capital investment by $125,000. What was the firm's operating cash flow during 2014?
The December 31, 2013, balance sheet of Schism, Inc., showed long-term debt of $1,400,000, $140,000 in the common stock account and $2,650,000 in the additional paid-in surplus account. The December 31, 2014, balance sheet showed long-term debt of $1,580,000, $150,000 in the common stock account and $2,950,000 in the additional paid-in surplus account. The 2014 income statement showed an interest expense of $94,000 and the company paid out $145,000 in cash dividends during 2014. The firm's net capital spending for 2014 was $960,000, and the firm reduced its net working capital investment by $125,000. What was the firm's operating cash flow during 2014?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The December 31, 2013, balance sheet of Schism, Inc., showed long-term debt of
$1,400,000, $140,000 in the common stock account and $2,650,000 in the additional
paid-in surplus account. The December 31, 2014, balance sheet showed long-term
debt of $1,580,000, $150,000 in the common stock account and $2,950,000 in the
additional paid-in surplus account. The 2014 income statement showed an interest
expense of $94,000 and the company paid out $145,000 in cash dividends during
2014. The firm's net capital spending for 2014 was $960,000, and the firm reduced
its net working capital investment by $125,000. What was the firm's operating cash
flow during 2014?
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