The December 31, 2021, balance sheet of Chen, Incorporated, showed long-term debt of $1,435,000, $147,000 in the common stock account, and $2,720,000 in the additional paid-in surplus account. The December 31, 2022, balance sheet showed long-term debt of $1,650,000, $157,000 in the common stock account and $3,020,000 in the additional paid-in surplus account. The 2022 income statement showed an interest expense of $97,500 and the company paid out $152,000 in cash dividends during 2022. The firm's net capital spending for 2022 was $1,030,000, and the firm reduced its net working capital investment by $132,000. What was the firm's 2022 operating cash flow, or OCF? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. Operating cash flow $ 1,239,025

The December 31, 2021, balance sheet of Chen, Incorporated, showed long-term debt of $1,435,000, $147,000 in the common stock account, and $2,720,000 in the additional paid-in surplus account. The December 31, 2022, balance sheet showed long-term debt of $1,650,000, $157,000 in the common stock account and $3,020,000 in the additional paid-in surplus account. The 2022 income statement showed an interest expense of $97,500 and the company paid out $152,000 in cash dividends during 2022. The firm's net capital spending for 2022 was $1,030,000, and the firm reduced its net working capital investment by $132,000. What was the firm's 2022 operating cash flow, or OCF? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. Operating cash flow $ 1,239,025

Name: The December 31, 2021, balance sheet of Chen, Incorporated, showed lo
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Description: The December 31, 2021, balance sheet of Chen, Incorporated, showed long-term debt of $1,435,000, $147,000 in the common stockaccount, and $2,720,000 in the additional paid-in surplus account. The December 31, 2022, balance sheet showed long-term deb

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

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Concept explainers

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.

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Question

The December 31, 2021, balance sheet of Chen, Incorporated, showed long-term debt of $1,435,000, $147,000 in the common stock
account, and $2,720,000 in the additional paid-in surplus account. The December 31, 2022, balance sheet showed long-term debt of
$1,650,000, $157,000 in the common stock account and $3,020,000 in the additional paid-in surplus account. The 2022 income
statement showed an interest expense of $97,500 and the company paid out $152,000 in cash dividends during 2022. The firm's net
capital spending for 2022 was $1,030,000, and the firm reduced its net working capital investment by $132,000. What was the firm's
2022 operating cash flow, or OCF?
Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to
the nearest whole number, e.g., 32.
Operating cash flow
$
1,239,025

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