The December 31, 2021, balance sheet of Chen, Incorporated, showed long-term debt of $1,450,000, $150,000 in the common stock account, and $2,750,000 in the additional paid-in surplus account. The December 31, 2022, balance sheet showed long-term debt of $1,680,000, $160,000 in the common stock account and $3,050,000 in the additional paid-in surplus account. The 2022 income statement showed an interest expense of $99,000 and the company paid out $155,000 in cash dividends during 2022. The firm's net capital spending for 2022 was $1,060,000, and the firm reduced its net working capital investment by $135,000. 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. Answer is complete but not entirely correct. Operating cash flow $ 2.261,000
The December 31, 2021, balance sheet of Chen, Incorporated, showed long-term debt of $1,450,000, $150,000 in the common stock account, and $2,750,000 in the additional paid-in surplus account. The December 31, 2022, balance sheet showed long-term debt of $1,680,000, $160,000 in the common stock account and $3,050,000 in the additional paid-in surplus account. The 2022 income statement showed an interest expense of $99,000 and the company paid out $155,000 in cash dividends during 2022. The firm's net capital spending for 2022 was $1,060,000, and the firm reduced its net working capital investment by $135,000. 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. Answer is complete but not entirely correct. Operating cash flow $ 2.261,000
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
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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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Transcribed Image Text:The December 31, 2021, balance sheet of Chen, Incorporated, showed long-term debt of $1,450,000, $150,000 in the common stock
account, and $2,750,000 in the additional paid-in surplus account. The December 31, 2022, balance sheet showed long-term debt of
$1,680,000, $160,000 in the common stock account and $3,050,000 in the additional paid-in surplus account. The 2022 income
statement showed an interest expense of $99,000 and the company paid out $155,000 in cash dividends during 2022. The firm's net
capital spending for 2022 was $1,060,000, and the firm reduced its net working capital investment by $135,000. 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.
Answer is complete but not entirely correct.
Operating cash flow
$2,261,000
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