The 2008 balance sheet of Maria\'s Tennis Shop, Inc., showed $2.8 million in lon
ID: 2629907 • Letter: T
Question
The 2008 balance sheet of Maria's Tennis Shop, Inc., showed $2.8 million in long-term debt, $852,800 in the common stock account, and $7 million in the additional paid-in surplus account. The 2009 balance sheet showed $3.7 million, $931,950, and $7.52 million in the same three accounts, respectively. The 2009 income statement showed an interest expense of $935,000. The company paid out $400,000 in cash dividends during 2009.
If the firm's net capital spending for 2009 was $730,000, and the firm reduced its net working capital investment by $160,000, the firm's 2009 operating cash flow, or OCF, is $_______
Explanation / Answer
Decrease in Current Liabilities
Net Cash Flow from Operating Activities = + Net Income + Non-Cash Expenses: (Depreciation, Depletion & Amortization Expense) + Non-Operating Losses: (Loss on Sale of Non-Current Assets) ? Non-Operating Gains: (Gain on Sale of Non-Current Assets) + Decrease in Current Assets: (Accounts Receivable, Prepaid Expenses, Inventory etc.) ? Increase in Current Assets + Increase in Current Liabilities: (Accounts Payable, Accrued Liabilities, Income Tax Payable etc.) ?Decrease in Current Liabilities
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.