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The 2008 balance sheet of Maria\'s Tennis Shop, Inc., showed $2.4 million in lon

ID: 2659498 • Letter: T

Question

The 2008 balance sheet of Maria's Tennis Shop, Inc., showed $2.4 million in long-term debt,  $750,000 in the common stock account, and $5.95 million in the additional paid-in surplus account. The 2009 balance sheet showed $3.65 million, $915,000, and $8.55 million in the same three accounts, respectively. The 2009 income statement showed an interest expense of $350,000. The company paid out $650,000 in cash dividends during 2009. If the firm's net capital spending for 2009 was $760,000, and the firm reduced its net working capital investment by $185,000, the firm's 2009 operating cash flow, or OCF?

The 2008 balance sheet of Maria's Tennis Shop, Inc., showed $2.4 million in long-term debt,  $750,000 in the common stock account, and $5.95 million in the additional paid-in surplus account. The 2009 balance sheet showed $3.65 million, $915,000, and $8.55 million in the same three accounts, respectively. The 2009 income statement showed an interest expense of $350,000. The company paid out $650,000 in cash dividends during 2009. If the firm's net capital spending for 2009 was $760,000, and the firm reduced its net working capital investment by $185,000, the firm's 2009 operating cash flow, or OCF?

Explanation / Answer

$-3,015,000