The 2014 balance sheet of Jordan’s Golf Shop, Inc., showed long-term debt of $5.
ID: 2813128 • Letter: T
Question
The 2014 balance sheet of Jordan’s Golf Shop, Inc., showed long-term debt of $5.8 million, and the 2015 balance sheet showed long-term debt of $6.05 million. The 2015 income statement showed an interest expense of $195,000. The 2014 balance sheet showed $570,000 in the common stock account and $2.4 million in the additional paid-in surplus account. The 2015 balance sheet showed $610,000 and $2.8 million in the same two accounts, respectively. The company paid out $565,000 in cash dividends during 2015. Suppose you also know that the firm’s net capital spending for 2015 was $1,430,000, and that the firm reduced its net working capital investment by $81,000.
The 2014 balance sheet of Jordan’s Golf Shop, Inc., showed long-term debt of $5.8 million, and the 2015 balance sheet showed long-term debt of $6.05 million. The 2015 income statement showed an interest expense of $195,000. The 2014 balance sheet showed $570,000 in the common stock account and $2.4 million in the additional paid-in surplus account. The 2015 balance sheet showed $610,000 and $2.8 million in the same two accounts, respectively. The company paid out $565,000 in cash dividends during 2015. Suppose you also know that the firm’s net capital spending for 2015 was $1,430,000, and that the firm reduced its net working capital investment by $81,000.
Explanation / Answer
Step1
Step 2
Thus OCF is $1241000
Calculation of Net Profit 2015 Paid in Surplus Account 2800000 Less 2014 Paid in Surplus Account 2400000 Add Dividends Paid 565000 Net Profit 965000Related Questions
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