Question

The 2013 balance sheet of Maria's Tennis Shop, Inc., showed long-term debt of $2.2 million, and the 2014 balance sheet showed long-term debt of $2.9 million. The 2014 income statement showed an interest expense of $686,000. During 2014, Maria’s Tennis Shop, Inc., had a cash flow to stockholders for the year of $302,000. Suppose you also know that the firm’s net capital spending for 2014 was $852,000, and that the firm reduced its net working capital investment by $76,000.

What was the firm’s 2014 operating cash flow, or OCF? (Round final answer to the nearest whole dollar. Do not round intermediate calculations).

Answer 1

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Home nert Page Layout Formulas Data Review View dd-Ins Cut aCopy E AutoSum ー E " ゴWrap Text в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 Conditional Format eCell Insert Delete Format Paste Sort &Find & Format Painter Formatting as Table Styles2 Clear Clipboard CE241 CA Alignment Number Cells Edting CB CD CE CF CG CH CI CJ CK CL 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 4 OCF CASH FLOW STATW cashflow to creditors interest paid -net new borrowings 686000 -(2900000-2200000) 14000 cashflow to stockholders dividends paid - net new equity 302000 GIVEN cash flow from assets cash flow to creditors cashflow to stockholders cash flow from assets- [-14000 + 302000] cash flow from assets- 288000 Cashflow from assets- 288000 288000 OCF - NET CAPITAL SPENDING- NET CHANGE IN WORKING CAPITAL OCF -852000 (-76000) OCF 85200076000 288000 852000 76000 ANS 1064000 ARM, MSI.confidenceINDEX CURRENCY LOANCROSS OVER HEDGING MONEY MARKET GM HPR AM TAX GROWTH SUSTPREF AND DIV POLICY 22-01-2019