Question

Please adhere closely to the rounding instructions(in red). Thanks!

Question 3 2 pts The 2013 balance sheet of Maria's Tennis Shop, Inc., showed long-term debt of $2.4 million, and the 2014 balance sheet showed long-term debt of $2.7 million. The 2014 income statement showed an interest expense of $596,000. During 2014, Maria's Tennis Shop, Inc., had a cash flow to stockholders for the year of $306,000. Suppose you also know that the firm's net capital spending for 2014 was $822,000, and that the firm reduced its net working capital investment by $95,000 What was the firm's 2014 operating cash flow, or OCF? (Round final answer to the nearest whole dollar. Do not round intermediate calculations) Topic: Cash Flow ldentity

Answer 1

	Long term debt
2013	$2,400,000.00		a
2014	$2,700,000.00		b
Interest	$596,000.00		c
Cash flow to creditors	1	$296,000.00	(=b-a+c)
Cash flow to stockholders	2	$306,000.00
Cash flow from asset	(1+2)	$602,000.00
Operating Cash flow
	(+ cash flow from asset)		$602,000.00
	(- change in working capital)		-$95,000.00
	(+ capital spending)		$822,000.00
	OCF		$1,329,000.00