Question

The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed $2.35 million in long-term debt, $780,000 in the common stock account, and $6.35 million in the additional paid-in surplus account. The 2018 balance sheet showed $4.15 million, $955,000, and $8.2 million in the same three accounts, respectively. The 2018 income statement showed an interest expense of $320,000. The company paid out $600,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $790,000, and the firm reduced its net working capital investment by $185,000, what was the firm's 2018 operating cash flow, or OCF?

This is a single question. There is no other available information.

Answer 1