Answer: -($2,000,000)
Explanation:
Cash flow to creditors = Increase in long term debt + Interest Paid
                                      = ($2.7 - $4.25) + $180,000
                                      = - $1,550,000 + $180,000
                                      = - ($1,370,000)
Cash flow to shareholders = Dividends paid + Increase in common stock + Increase in additional paid-in surplus account
                                             = $510,000 + ($760,000 - $905,000) + ($6.25 - $7.9)
                                             = $510,000 - $145,000 - $1,650,000
                                             = - ($1,285,000)
Cash flow from Assets = Cash flow to creditors + Cash flow to shareholders
                                       = - ($1,370,000)  - ($1,285,000)
                                       = - ($2,655,000)
Operating cash flow =  Cash flow from Assets + Change in net working capital + net capital spending
                                   =   - ($2,655,000) + (-$195,000) + $850,000
                                   = -($2,000,000)