Question

The December 31, 2018, balance sheet of Whelan, Inc., showed long-term debt of $1,430,000, $146,000 in the common stock account, and $2,710,000 in the additional paid-in surplus account. The December 31, 2019, balance sheet showed long-term debt of $1,640,000, $156,000 in the common stock account and $3,010,000 in the additional paid-in surplus account. The 2019 income statement showed an interest expense of $97,000 and the company paid out $151,000 in cash dividends during 2019. The firm’s net capital spending for 2019 was $1,020,000, and the firm reduced its net working capital investment by $131,000. What was the firm's 2019 operating cash flow, or OCF?

Answer 1

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20:34 VO E ENG 16 01 2000 ES DX368 - XVfx DW DX DY DZ EA EBECEDEE -113000 349 350 351 352 353 354 cashflow to creditors interest paid-net new borrowings (=97000 - (1640000 - 1430000)] -159000 355 cashflow to stockholders dividends paid - net new equity [=151000 - (156000 + 3010000-146000-2710000)] 356 357 358 cash flow from assets = cash flow to creditors + cashflow to stockholders Cash flow from assets = -113000 + (-159000) = -272000 359 cashflow from assets = operating cash flow (OCF) - changes in working capital - net capital spending -272000 = OCF - (-131000) - 1020000 OCF = -272000 -131000 + 1020000 = 617000 360 361 362 363 ANSWER 364 365 366 367 368 369 370 371 372 373 374 ... OCF CASH FLOW STATW FCFARM, MSI,conlidenceINDEX CURRENCY LOAN CROSS OVER HEDGING MONEY MARKET GM HPR AM TAX GROWTH SUST PREF AND DIV POLICY ... 6