The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed $2.85 million in long-term debt, $750,000...

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Finance

The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed$2.85 million in long-term debt, $750,000 in the common stockaccount, and $6.05 million in the additional paid-in surplusaccount. The 2018 balance sheet showed $3.6 million, $945,000, and$8.5 million in the same three accounts, respectively. The 2018income statement showed an interest expense of $230,000. Thecompany paid out $590,000 in cash dividends during 2018. If thefirm's net capital spending for 2018 was $750,000, and the firmreduced its net working capital investment by $175,000, what wasthe firm's 2018 operating cash flow, or OCF?

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Cash Flow to Creditors Cash Flow to Creditors Interest Expenses Paid Net Increase in Long term debt Interest Expenses Paid Long term debt at the end Long term Debt at the Beginning 230000 3600000 2850000 See Answer

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The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed$2.85 million in long-term debt, $750,000 in the common stockaccount, and $6.05 million in the additional paid-in surplusaccount. The 2018 balance sheet showed $3.6 million, $945,000, and$8.5 million in the same three accounts, respectively. The 2018income statement showed an interest expense of $230,000. Thecompany paid out $590,000 in cash dividends during 2018. If thefirm's net capital spending for 2018 was $750,000, and the firmreduced its net working capital investment by $175,000, what wasthe firm's 2018 operating cash flow, or OCF?