Answer:
The firm’s 2018 operating cash flow, or OCF is $1,470,000
Explanation:
For computing the operating cash flow, we have to use the formula of cash flow from assets which is shown below
= Operating cash flow - net capital spending - changes in working capital
where,
cash flow from assets = cash flow to creditors + cash flow to shareholders
= $5,000 + $60,000
= $65,000
And, the other item would remain same
Now put these values to the above formula
So, the value would equal to
$65,000 = Operating cash flow - $1,450,000 - (-$85,000)
$65,000 = Operating cash flow - $1,450,000 + $85,000
So, the operating cash flow = $1,470,000
